One thing we know for sure is this year has been and continues to be full of changes starting in 2019 and continuing to linger on into 2021. We all thought by now things would be back to normal but we have since realized this would not be the case. With that being said, some things should change like the Student Loan Industry. Luckily there are some things that have come about this year that are bound to be a good thing for many who suffer with the burden of their student loan debt.
1. For starters, as most know, the Student Loan Covid-19 Forbearance has been extended for all with Federal Direct Student Loans until January 31st! This is great news for those with this type of loan but keep in mind, even if you have a different type of Federal Loan its not too late to get set up to qualify for this Forbearance. There are two main reasons to do this:
- Zero Interest until February
- Zero Payments until February
Those are good enough reasons to switch over to Direct loans. Now we also have more changes as some may have been made aware of.
The Federal Servicers you have come to know for more than 10 years are going away… So no more Fedloans, Navient, Great Lakes or many others. We don’t know when the change will officially occur but Fedloans has already started sending their borrowers a heads up. I suspect the other servicing companies will do the same soon. Definitely check out a previous Blog
I wrote last year that lists out the new companies so you can keep an eye out for documentation from your new Servicer.
3. ITT Tech Discharge will be finally happening. More than 100,000 borrowers who were misled by ITT Tech will see their loans discharged starting in September. There will be some steps involved of course but if you went to ITT Tech between 2008 and 2016 contact us ASAP to assist in getting your loans discharged.
And ITT Tech borrowers are not the only ones to see Discharge this year.
4. Over 300,000 borrowers who have Total and permanent Disability will have their loans discharged automatically. Previously there was paperwork that needed to be filled out by a doctor to make this happen but now the government will cancel these loans by reviewing SSA information.
5. Last but not least, FHA home buying rules have changed. If you had student loans in the past the FHA rules used 1% of the balance as your payment even if you had a reduced payment due to Income-Based Repayment or other factors. Now, they can use the actual payment you have or if you don’t have a payment at all underwriters will use 0.5% as your payment amount. This will allow many more borrowers with student loans to qualify for a mortgage. Learn more about the changes on Forbes.
So many great changes that you certainly don’t want to miss. Degrees of Success has prided themselves in being able to assist thousands over the years to achieve better repayment terms, forgiveness and much more. Contact us Here to learn more about the changes and to ensure you are managing your student loans properly!
Change is Coming… Don’t Miss It!
Degrees of Success
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