Student Loan Consolidation Or Bankruptcy?
There was a big kerfuffle about ACS student loans in Massachusetts back in 2021. At that time, the state had just implemented an automatic enrollment plan for all eligible borrowers who’d previously made defaulted on their federal student loans. In all, over 20M students were affected by this new program. As expected, a lot of anger and frustration followed suit. There were complaints about unfair practices, inaccurate data, and, more importantly, the fact that students couldn’t get any help from the schools or from the federal government to navigate the complex system and make the right decisions.
That’s when the Obama administration took action. It’s one of the reasons that Congress passed the Federal Family Education Loan Refinance Act in 2021. The purpose of that act is to ensure that all Americans have access to reliable, interest-free refinancing regardless of income or family situation. Today, you can easily apply for an FFL refinance if you’ve been adversely affected by the loss of your previous loans-if you’ve dropped out, if you’re unemployed, if you’re retired, or if you have any other kind of financial difficulty.
To qualify for FHA and CMS refinancing of student loans, you first must be enrolled at an eligible college. You must also meet the income guidelines that are set forth by the Department of Education for the purposes of the FAFSA certification. If you meet both of those criteria, then you can start working on your FHA or CMS refinance today!
A lot of people are wondering how to lower their interest rates on these federal loans. One option that you may want to consider is Perkin Loans. With Perkin Loans, you have the ability to choose from a variety of options, including the interest rate you set, payment frequency, and loan amount. In short, you get to choose exactly what kind of refinancing you want through Perkin Loans.
What is the deal with student loans and loan forgiveness programs? There are actually two different types of debt relief programs available to you through CMS and FAFSA – student loans and loan forgiveness. If you are unable to repay your loans, you may qualify for loan forgiveness. And if you do qualify for loan forgiveness, you can benefit by reducing your overall monthly payments and even paying nothing towards your principle even though you owe them money!
However, not all student loans qualify for loan forgiveness. CMS does not have a list of qualifying loans for loan forgiveness. But many former service do inform graduates of the available loans that do qualify. This information can be obtained from the office of Military Lending or from the Federal Family Education Loan Programs (FFELP) office.
The second option is a much better deal than the first. Loan consolidation works by combining all of your federal student loans into one lower monthly payment. The federal government pays the entire cost of consolidation, while private lenders to cover the remaining cost. This will combine your interest rates, principal, and interest. The best part is that once you’re enrolled in a consolidated student loan program, you won’t have to worry about paying any more interest than you did before.
So which is the best loan program? Loans discharged by Obama’s program will benefit students who meet one or more of the criteria mentioned above. Those loans cannot be consolidated. But try a little harder and find an online financial assistance service that gives you free financial advice from multiple lenders, and get a quote from each lender for a fixed monthly payment. You will save a lot of time by finding the best loan program for you, and saving money by eliminating your current, high-interest loans.