If you don’t qualify for a Navient student loan waiver, try these options instead
Navient (Photo illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images)
SOPA Images/LightRocket via Getty Images
If you don’t qualify for a Navient student loan waiver, try these options instead.
Here’s what you need to know.
student loans
If you’ve followed the latest student loan headlines, you may know that Navient — one of the nation’s largest student loan providers — has agreed to an important student loan settlement. As a student loan borrower at Navient, you could get over $1.7 billion in student loan cancellations. That’s the good news. (How to qualify for $1.7 billion in student loan forgiveness).
The bad news, however, is that there’s a good chance you won’t qualify. For example, out of 45 million student loan borrowers, approximately 66,000 are eligible for $1.7 billion in student loan forgiveness. Another 350,000 student loan recipients may be eligible for an additional $95 million in student loan relief. This means that millions of student loan borrowers are not eligible for student loan forgiveness. (Here’s who doesn’t get student loan forgiveness).
However, there is a silver lining. If you don’t qualify for cancellation of that student loan, there are several other viable options and here are the actions to consider.
1. Student loan payment break can help you save every month
If you have federal student loans, the good news is that your student loans are still on hold until May 1, 2022. This means no defaults on mandatory federal student loan payments, no interest accrual, and no student loan collections. Since March 2020, when Congress passed the CARES Act, student loan borrowers have had access to this historic student loan relief. (Biden should end student loan facilitation). The US Department of Education estimates that borrowers have saved $5 billion a month in student loan interest. Progressives in Congress want President Joe Biden to extend student loan easing beyond May. (Will student loan payments be deferred to 2023?). So far, however, the White House and the Department of Education have signaled that student loan repayments will resume as planned in May. (Student loans will resume soon. Here’s how to prepare for repayment).
Shock poll: Student loans will be completely eliminated before student loan payments resume in May
2. Consolidate student loans
If you’re overwhelmed by the idea of going back to monthly student loan payments, you’re not alone. Student loan repayment is a lot to manage, especially if you have multiple student loans with different student loan rates, student loan balances, and student loan managers. (Biden stops questioning student loan forgiveness after public outcry) Student loan consolidation is a strategy for organizing and streamlining your government student loans. You can consolidate your current government student loans into a single direct consolidation loan. This new federal student loan will have a student loan balance, a student loan interest rate, a student loan administrator and a monthly payment. This can simplify your life every month. The downside is that you don’t get a lower interest rate. Rather, your interest rate is a weighted average of your current interest rates, rounded up to the nearest 1/8%.
3. Get student loan forgiveness this way
There are several ways to get student loan forgiveness, including income-based repayment plans like IBR, PAYE, REPAYE, and ICR. Check with your student loan officer for details. (Should Biden cancel student loans, that will be next). Alternatively, there are student loan forgiveness options such as: B. the forgiveness of public service loans. Through this program, you will work for a qualified government or non-profit employer, make 120 monthly student loan payments, and meet other requirements. The good news is that you can cancel the federal student loan entirely. The downside is that it can take 10 years. If you have prior student loan payments that are not eligible for government loan forgiveness, you may complete a limited waiver to include your prior student loan payments. (Student loans are on hold, but here are 6 things you can do now).
4. Refinance student loans to get historically low interest rates
Student loan refinance is the best way to get a lower interest rate on your student loans. Student loan refinancing rates are now at an all-time low, starting at 1.74% for variable rates and 1.99% for fixed rates.
this Student Loan Refinancing Calculator shows you how much you can save by refinancing student loans.
For example, let’s say you have $100,000 in student loans, an 8% interest rate, and a 10-year repayment period. For example, by refinancing your student loans at a 3% interest rate and a 10-year repayment period, you would save $248 each month for a total of $29,720. You can choose between a fixed or variable interest rate and a term of between 5 and 20 years. If the student loan is repaid early, there are no application fees, setup fees or early repayment penalties. Plus, you can refinance again in the future if you find a lower interest rate. To qualify, you must have a minimum credit score of 650, current employment or a signed job offer, steady income, and a low debt-to-income ratio.
With student loan refinance, you can refinance private or government student loans, or both. Personal loan refinance is a smart move if you can qualify for a lower interest rate. Federal loan refinancing depends on whether you feel you need access to federal benefits such as earnings-related repayment or government loan forgiveness. If so, then don’t refinance federal student loans. If no, then you can choose to refinance federal student loans to get a lower interest rate and save money.