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Navient Settles Lawsuit Over Student Loan Forgiveness Program

Navient Settles Lawsuit Over Student Loan Forgiveness Program

Congress created the Public Service Loan Forgiveness Program (PSLF) to provide student loan discharges to those who work in the public interest, such as for a government agency or a nonprofit organization. For example, if you’re a full-time employee of a public school system, your employment would meet the requirements for PSLF, regardless of whether you’re a teacher, administrator, or support staff. Under this program, the remaining balance on your eligible loans is forgiven after you make 120 qualifying monthly payments under…

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Student Loan Forbearance During Coronavirus Might Prevent You From Getting a New Mortgage or Refinance Loan

Student Loan Forbearance During Coronavirus Might Prevent You From Getting a New Mortgage or Refinance Loan

The federal Coronavirus Aid, Relief, and Economic Security (CARES) Act puts an automatic suspension on payments for eligible federal student loans for six months, from March 13, 2020, until September 30, 2020. For many people, getting a break from payments during this national emergency is a lifesaver. But for others, having a loan in forbearance can hurt or ruin their chances of qualifying for a new mortgage or refinance loan. Here’s why: Mortgage lenders usually use your actual monthly student…

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Trump Veto Makes Getting a Student Loan Discharge More Difficult

Trump Veto Makes Getting a Student Loan Discharge More Difficult

Under an Obama-era rule, known as the “borrower defense to repayment” rule, if your school fraudulently convinced you to enroll or remain enrolled, you can get a discharge of your federal student loans relatively easily. Education Secretary Betsy DeVos has long argued that the Obama rule makes it too easy for borrowers to get student loan forgiveness, and that a new rule is necessary to save taxpayers billions of dollars. So, last year, DeVos declared that for loans first disbursed…

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