Student Loans

What Happens To Student Loans If You Withdraw – How to Not Pay your Student Loans (Legally)

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What Happens To Student Loans If You Withdraw – Whats The Best?

1. Public Service Loan Forgiveness
Does not let you forgive all of your loans but it will cover most of them if you qualify. Must be a full time employees of a government agency (federal, state or local) or of a 501(c)(3 non profit organization (must be non religious) Some other requirements include
making 120 on-time payments to your loans.
You must have Direct loans, which include:
• Direct subsidized and unsubsidized loans
• Direct PLUS loans
• Direct consolidation loans
And you must be repaying your loans in an income-driven repayment plan:
• Pay As You Earn Repayment Plan (PAYE Plan)
• Revised Pay As You Earn Repayment Plan (REPAYE Plan)
• Income-Based Repayment Plan (IBR Plan)
• Income-Contingent Repayment Plan (ICR Plan)
You must fill out Employment Certification for Public Service Loan Forgiveness form each year Once you jump through all of those hoops and After your 120 payments, 100 percent of your loan balance is forgiven.  Congrats !!

2. Income-Based Repayment (IBR) Forgiveness
 These are plans which can lower your monthly student loan payments. It still requires you to pay 10 to 15 percent of your discretionary income for 20 to 25 years, depending on different factors. This type of repayment plan is best for those who have a lot of debt but don’t expect to have a high income throughout their careers.

You may qualify for Income-Based Repayment (IBR) Forgiveness plan if your payments would be lower than the standard 10-year repayment plan and you have one of these types of loans:
• Direct subsidized and unsubsidized loans
• Direct PLUS Loans made to graduate or professional students
• Direct Consolidation Loans that did not repay any PLUS loans made to parents
• Subsidized and unsubsidized Federal Stafford Loans
• FFEL PLUS Loans made to graduate or professional students
• FFEL Consolidation Loans that did not repay any PLUS loans made to parents
• Federal Perkins Loans
3. Pay As You Earn (PAYE) Forgiveness

This is another type of income-driven repayment plan, similar to Income-Based Repayment (IBR) Forgiveness plan. With Pay As You Earn Forgiveness plan, your payments are maxed out at 10 percent of your discretionary income, and IF your payments would be less than your standard 10-year payments.
You need to make consistent payments for 20 years, and you need to be a new borrower as of Oct. 1, 2007. The same types of loans qualify as for Income-Based Repayment (IBR) Forgiveness plan.

4.Revised Pay As You Earn (REPAYE)

Revised Pay As You Earn is similar to Pay As You Earn (PAYE) Forgiveness except that there are no income requirements. That means you could pay a lot more under this plan than via a standard 10-year repayment plan. But, if you make on time, consistent payments 20 years (25 for graduate loans), you can get the rest of your loan balance forgiven. Income-Contingent Repayment (ICR) Forgiveness
This plan requires you to pay the lesser of 20 percent of your discretionary income, or what you’d pay on a fixed 12-year plan. This is the only IDR repayment program available to parent PLUS loan borrowers. You must make on-time payments for 25 years, after that your balance is forgiven.

6. The National Health Service Corps Loan (NHSC) Repayment Program
Loan Forgiveness for Doctors
Pharmacists, Doctors, and other healthcare professionals have some other options for loan forgiveness programs, depending on where they work.
The The National Health Service Corps Loan (NHSC) Repayment Program if you work in a Health Profession Shortage Area at a NHSC approved site You can receive up to $50,000 in loan repayment in exchange for at least a two-year service commitment.
7. The National Institute of Health Loan Repayment Programs (LRPs)
up to $35,000 annually of a researcher’s qualified educational debt in return for National Institute of Health mission-relevant research.

8. The Nurse Corps Loan Repayment Program
This program is offered to nurses who work in underserved communities for a minimum of two years. You must work in a “critical shortage facility,”. It pays “60 percent of your nursing education debt over the course of two years—with an option to extend a third year for an additional 25 percent.

9. Teacher Loan Forgiveness Program
This federal program forgives up to $17,500 on your Direct Subsidized and Unsubsidized Loans and your Subsidized and Unsubsidized Federal Stafford Loans if you “teach full-time for five complete and consecutive academic years in a low-income school.”

10. Loan Forgiveness for Lawyers
Attorneys who work for three years at the Department of Justice might qualify for $60,000 in assistance.

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40 Comments

  1. Kat Theo
    July 25, 2021 at 12:00 pm

    Hey! Happy Money Monday! I didn't realize how incredibly boring it is talking about student loans until I finished BUT I put in the description all of the info so you can follow along as well! LOVE YOU ALL! (The nice ones at least!) 🙂 -Kat

  2. Jesica Barrow
    July 25, 2021 at 12:00 pm

    Cyber_plot on ïnstägräm, helped me clear my debt of $30k.. He is a life saver

  3. Moon Lambo
    July 25, 2021 at 12:00 pm

    Cyber_plot on ïnstägräm helped me cancel my loan of about $30k

  4. Shayla Channel
    July 25, 2021 at 12:00 pm

    I ain’t paying shit back they better kiss my ass lol 😂

  5. Linds Tatum
    July 25, 2021 at 12:00 pm

    Oh what I would give to have 29k in student debt

  6. Melani Smith
    July 25, 2021 at 12:00 pm

    Try $150,000 😐

  7. Show time
    July 25, 2021 at 12:00 pm

    something is wrong with USA. Why college tuition is beyond the reach of most working class Americans? A private college tuition cost average $30,000 a year times 4 years for a bachelor degree. How many working class Americans family can afford that? Cuny and Suny universities the seats are limited and most of their competitve programs like medical, laws, and science have very limited seats. So even with good grades you will not be accepted into their programs. So that is to tell the working class Americans to stay in the bottom and don't think of getting a college education to advance in social status. Or take out a federal government student loan and suffer a high interest rate of 7%. That means if you take out $120,000 for 4 years college, you will end up repaying $180,000 in 10 years. You make an income of $80,000 a year and pay income taxes, property taxes and taxes on everything you buy to the government. You come home with less than half of $80,000 a year which is around $40,000 than you get stuck with paying $180,000 of government federal student loans. The rich 1% of our population are not paying taxes(go ask Trump and Amazon CEO) and they get the most benefits out of the money of USA taxpayers, and have power over the interest rate of federal student loans and they are happy to see working class Americans stay…………working for them instead of advancing with higher education and social status. The working class Americans are nothing but working bees for the rich 1% and our whole liveiihood including our lives are expendable so no health insurance. The poor Americans figured it out long time ago and gave up on education and just apply for welfare.

  8. Jose Torres
    July 25, 2021 at 12:00 pm

    No problem paying for it, just having hard time finding a job that pays for it

  9. Garry shaw
    July 25, 2021 at 12:00 pm

    I am so happy i used the services of this computer geek

    creditmasterfix ,com, they are the best when it comes to credit repair. Absolute professionals. Kindly let the hacker know I referred her services to you and she would be glad to help. (Gina AT Creditmasterfix DOT Com)

  10. We Beamin
    July 25, 2021 at 12:00 pm

    Great information thanks a bunch !!

  11. mlett1982
    July 25, 2021 at 12:00 pm

    Hi Kat, I have a student loan problem. I was going through my Masters degree when I had breast cancer followed by a stroke. I lost my kids and have to pay my ex-husband child support. I amassed a $60,000 in student debt because I was on disability for 5yrs. Currently I am back on my feet working full time as a CPA. I don't have the means to pay the loan back. I saw your piece on student debt relief and was wondering if you had any more great advice? Thank you, Jo-Anne (yes i am using my boyfriends computer.)

  12. Wesley P
    July 25, 2021 at 12:00 pm

    except you forgot about taxes. any loan forgiven gets added to your taxes. so if you get 100k wiped out you will likely be taxed at around 45% on that "income" and will get a 45k tax bill that is due immediately that has no payment plans. so its not free.

  13. Stephanie Gonzalez
    July 25, 2021 at 12:00 pm

    I need 2nd job

  14. Stephanie Gonzalez
    July 25, 2021 at 12:00 pm

    Its expensive i owe 10,000 i have a kid also its hard to manage it need to pay rent too

  15. hh ******************
    July 25, 2021 at 12:00 pm

    information is useful but title is kinda clickbait.

  16. Goofy Kitty
    July 25, 2021 at 12:00 pm

    Amazing video Kat! Sent this to my sis bcs my nephew will be attending college in a few years and I wish I would’ve had this info before I went. 👍🏼

  17. Paola Valtierra
    July 25, 2021 at 12:00 pm

    Yes…I have a lot of debt. Would have done things differently. Thank you.

  18. Dave Stock
    July 25, 2021 at 12:00 pm

    How’s about how not to pay your mortgage, car payments, credit cards. I mean, if your gonna weasel out of that debt cause you want the freebie advantage, how about weaseling out of the rest. Sounds like you won’t afford any of the other stuff. Should’ve skipped so- called college and stuck with McDonalds.

  19. LightningBlueMeanie
    July 25, 2021 at 12:00 pm

    Be an adult and pay who you owe. You took out the loan.

  20. Kip C
    July 25, 2021 at 12:00 pm

    Which one of these is best for parent plus loans? And should I try to get some other type of loan in the future?

  21. Isabel Chaparro
    July 25, 2021 at 12:00 pm

    Just an fyi anyone on an IBR plan, be careful when you get married and want to file jointly..the repayment calculation will go based off both your incomes. That’s not a big deal except if you take care of elderly parents or have a mortgage then this is horrible. I need Bernie to atleast wipe out my interest do I can make a dent to my loans.

  22. Kalo Btzzk
    July 25, 2021 at 12:00 pm

    Bellevue University in Nebraska??

  23. Conan the Destroyer
    July 25, 2021 at 12:00 pm

    None of this applies to me. Why are Parent Plus loans so HIGH!!!! 7.6% sucks.

  24. karar may
    July 25, 2021 at 12:00 pm

    Which country you are taking about

  25. Felix Dzerzhinsky
    July 25, 2021 at 12:00 pm

    Is this Rachel Dolezal?

  26. Freedom By Design With Tone Ca
    July 25, 2021 at 12:00 pm

    Wow Great info 🔥

  27. Dale Walker
    July 25, 2021 at 12:00 pm

    Sorry but the music was very annoying, distracting and gave me a headache. I couldn't listen any longer….. Bye 🙁

  28. penny kirksey
    July 25, 2021 at 12:00 pm

    What if I have parent plus loans for my adult child, but I’m on a set income, not even 2,000 a month and owe 70,000, Thanks

  29. DST2223
    July 25, 2021 at 12:00 pm

    I plan to do this too so I only have to pay half of my debt. I owe $42k OMG!!

  30. Film Hack
    July 25, 2021 at 12:00 pm

    What are you studying for your second degree? What was your undergraduate degree in?

  31. Adam Williams
    July 25, 2021 at 12:00 pm

    You get a big LIKE for being really cute and super fly.

  32. TheIronshogun
    July 25, 2021 at 12:00 pm

    So with the money I'll save I would like to take you to Blue Sushi. First I need to purchase a orange outfit. Then I'm gonna need you to pick me up by this gas station in Minneapolis, MN. My phone is dead so email me. Make sure you bring cash cause my wallet seems to get lost on any tab over five bucks… Cool? I have a big time tricycle deal I'm working on so wherever we go make sure there is Wi-Fi for your phone cause I like to check my junk mail for KFC offers. BTW I luuuuv your videos.

  33. Lovely Dae
    July 25, 2021 at 12:00 pm

    Do Concordia online it's 7k

  34. Uketa Gaddy
    July 25, 2021 at 12:00 pm

    They make it so difficult to understand these options on purpose

  35. Alan Glass
    July 25, 2021 at 12:00 pm

    Is it possible to contact you directly?

  36. Kryptonite
    July 25, 2021 at 12:00 pm

    Yikes, the thought of school makes me cringe. You are right on one thing. School is not for everyone. I know it was not for me. Props to you for continuing your education and getting a second degree.

  37. Daniel
    July 25, 2021 at 12:00 pm

    What are you getting a degree in?

  38. Jupiter Stars
    July 25, 2021 at 12:00 pm

    I'm already doing the income driven repayment plan, how do I get the amount forgiven though sis? ❤

  39. Ragazza
    July 25, 2021 at 12:00 pm

    Yikes impossible considering rent or home payment 🥴 i regret my degree I wish I would have done a technical degree engineering or nursing something useful

  40. Justin Y. 2.0
    July 25, 2021 at 12:00 pm

    I might sell my kidney to pay off my loans, I think I can Live only on one kindey