What type of loans qualify for interest waiver?

[Dred Pirate]

This is the message from my student loans - they are all stafford student loans that were consolidated - it is honestly no big deal as I only pay about $75 a month in interest - but wondering what qualifies if staffords don't?

Student Loan Interest

On Friday, March 13, 2020, the president announced that interest would be waived on federal student loans owned by the federal government during this national emergency. At this time, the U.S. Department of Education has indicated that the federal loans serviced by Aspire Servicing Center do not qualify for this interest waiver.

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[mustang sally]

Interesting, I thought it was just all federal student loans in general.

 

[Dred Pirate]

Interesting, I thought it was just all federal student loans in general.

I am thinking only those serviced by the fed (Sallie Mae) count, not those guarnateed by the federal government.

 

[babybull]

greatlakes services my fed loans, and the interest is frozen AND i am taking advantage of trump's announced loan payment postponements due to the coronavirus so that i can invest the money in the stock market (or to buy a home if home prices tumble considerably).

 

[aqb]

Looks like my loans qualified as well. Seems like there's mainly two options for people, to take advantage of postponement/interest-free and put that $ towards down payments and other expenses, or use this time to aggressively pay down principal balances.

I'm probably going with the first option, anticipating a dip in the housing market in the coming months. My wife and I are on the cusp of having enough for a 20% down payment, which is a rare thing for anyone to say in SoCal. If it doesn't dip then at least we'll have that set aside and ready while shifting our focus in paying down student debt afterward.

 

[Transformer]

I also have Stafford student loans. Log on to FedLoan servicing account today. My average interest rate is now 0% and outstanding interest is $0.

For those looking to payoff your student loans, this is a good opportunity to do so without interest accruing (For most of us; payoff student loans > playing the market).

This is the message from my student loans - they are all stafford student loans that were consolidated - it is honestly no big deal as I only pay about $75 a month in interest - but wondering what qualifies if staffords don't?

Student Loan Interest

On Friday, March 13, 2020, the president announced that interest would be waived on federal student loans owned by the federal government during this national emergency. At this time, the U.S. Department of Education has indicated that the federal loans serviced by Aspire Servicing Center do not qualify for this interest waiver.

 

[BMBiology]

Looks like my loans qualified as well. Seems like there's mainly two options for people, to take advantage of postponement/interest-free and put that $ towards down payments and other expenses, or use this time to aggressively pay down principal balances.

I'm probably going with the first option, anticipating a dip in the housing market in the coming months. My wife and I are on the cusp of having enough for a 20% down payment, which is a rare thing for anyone to say in SoCal. If it doesn't dip then at least we'll have that set aside and ready while shifting our focus in paying down student debt afterward.

For the next 6 months, I don’t see prices dropping in SoCal (not much at least):

1) There is currently a foreclosure freeze for the next 12 months. Distressed properties are not going to be on the market, even the ones that were in the foreclosure process before the outbreak.

2) Inventory is still low.

3) Sellers are no longer cashing out and moving to Arizona, Texas. Who wants to move during a time like this?

4) Sellers don’t want a bunch of random people to tour their homes which would further suppress inventory

What might cause prices to drop? A major spike in coronavirus related deaths.

I do see some opportunities in the luxury condo market. Who wants to pay top dollar and live with a bunch of random people?

 

[mentos]

I don't know how people in CA live in condos. $600k for a 3 bed/2bath plus HOA fees on top of that, and you can't even practice social distancing 'cause everyone's packed like sardines.

 

[confettiflyer]

I don't know how people in CA live in condos. $600k for a 3 bed/2bath plus HOA fees on top of that, and you can't even practice social distancing 'cause everyone's packed like sardines.

just make more money.

the only people i know who live in those condos are DINK's, granted my social circle is skewed.

 

[confettiflyer]

Stimulus Package Brings Relief to Most Student-Loan Borrowers

The economic-stimulus law allows most Americans with federal student debt to stop making monthly payments through Sept. 30, with no financial penalties.

www.wsj.com

So good news, not only do we get 6 months of no payments, people on PSLF will get 6 months of payment credit on top of that. Woot woo!

 

[MindGeek]

• Direct Loans owned by the Department of Education are included in the CARES Act 6-month payment suspension, regardless of servicer.
• FFELP loans are included if they were since bought by the DoE and currently owned by the DoE.
• The CARES Act payment suspension is supposed to be automatic, and not require contacting the servicer.
• The 6-months of $0 payments by the DoE to your servicer are to keep you on track for IDR-based forgiveness.
• FFELP loans that are owned by the servicer (mine is Navient) are not included.
• At least on my end in Navient.com, the White House Interest Waiver is reflected, but the CARES Act payment suspension should supersede this in the coming days.
• Navient is trying to suspend all eligible loans by 4/11, but I have an auto-pay set for 4/5, and am concerned.

 

[Wickett]

For the next 6 months, I don’t see prices dropping in SoCal (not much at least):

1) There is currently a foreclosure freeze for the next 12 months. Distressed properties are not going to be on the market, even the ones that were in the foreclosure process before the outbreak.

2) Inventory is still low.

3) Sellers are no longer cashing out and moving to Arizona, Texas. Who wants to move during a time like this?

4) Sellers don’t want a bunch of random people to tour their homes which would further suppress inventory

What might cause prices to drop? A major spike in coronavirus related deaths.

I do see some opportunities in the luxury condo market. Who wants to pay top dollar and live with a bunch of random people?

I just got an offer accepted on a home and begin closing this week. Owners were an elderly couple that had the house on the market almost 6 months because they refused to budge on their original asking price during that time period. We came in offering 25k under, expecting a counter offer, and they accepted immediately.

I am more optimistic on homes because I dont think 500k+ will die from this and inventory continues to be low, but the panic is real. I could be totally wrong and everything may tank in the next 12-24 months, but no plans on moving anytime in the next 5+ years and the rates are just so low (got 3.25% with chance to re lock once during closing if rates dip even lower).

 

[MelaNix12]

I'm confused. Does anyone know if you are on a IDR-Based forgiveness plan will the 6 months of $0 payments count towards your total required payment count? So, if you are on PAYE, REPAYE, etc? Or does that only count for PSLF???

Because the statement below comes straight from FedLoans home page...doesn't look like either plan will count towards the total amount. Unless FedLoan hasn't updated their website yet...

"Special Considerations for Borrowers Pursuing Public Service Loan Forgiveness or Loan Forgiveness Through an Income-Driven Repayment (IDR) Plan: The time spent on the emergency administrative forbearance will not count toward your required payment count."

 

[VictorOfHungerGames]

I'm confused. Does anyone know if you are on a IDR-Based forgiveness plan will the 6 months of $0 payments count towards your total required payment count? So, if you are on PAYE, REPAYE, etc? Or does that only count for PSLF???

Because the statement below comes straight from FedLoans home page...doesn't look like either plan will count towards the total amount. Unless FedLoan hasn't updated their website yet...

"Special Considerations for Borrowers Pursuing Public Service Loan Forgiveness or Loan Forgiveness Through an Income-Driven Repayment (IDR) Plan: The time spent on the emergency administrative forbearance will not count toward your required payment count."

Just spoke to my loan servicer. If I understood correctly, if you are on a 20 year plan, which I am, this 6 month grace period will count towards the plan even though you are not making any payments. Meaning, regardless of whether you pay or not during this time, you're still paying for 20 years, not 20 years and 6 months. If that makes sense. So if you want to keep on paying for the next 6 months or whatever time period they're pausing the payment for, I was told my next payment would be in October or November depending on when they decided to lift the pause, you would pay 19 years and 6 months.

So yeah, I'll be investing this money in my vangaurd account lol

 

[confettiflyer]

I'm confused. Does anyone know if you are on a IDR-Based forgiveness plan will the 6 months of $0 payments count towards your total required payment count? So, if you are on PAYE, REPAYE, etc? Or does that only count for PSLF???

Because the statement below comes straight from FedLoans home page...doesn't look like either plan will count towards the total amount. Unless FedLoan hasn't updated their website yet...

"Special Considerations for Borrowers Pursuing Public Service Loan Forgiveness or Loan Forgiveness Through an Income-Driven Repayment (IDR) Plan: The time spent on the emergency administrative forbearance will not count toward your required payment count."

It counts, the websites aren’t fully updated yet. The temporary administrative forbearance from Trump’s executive order doesn’t count payments, but the new COVID19 provisions in the CARES Act is clear that it counts.


Sent from my iPhone using SDN

 

[babybull]

For the next 6 months, I don’t see prices dropping in SoCal (not much at least):

1) There is currently a foreclosure freeze for the next 12 months. Distressed properties are not going to be on the market, even the ones that were in the foreclosure process before the outbreak.

2) Inventory is still low.

3) Sellers are no longer cashing out and moving to Arizona, Texas. Who wants to move during a time like this?

4) Sellers don’t want a bunch of random people to tour their homes which would further suppress inventory

What might cause prices to drop? A major spike in coronavirus related deaths.

I do see some opportunities in the luxury condo market. Who wants to pay top dollar and live with a bunch of random people?

i win again. haven't been paying my student loans, and what do we get? trump gives us IBRers a free pass on 6 months worth of payments. for me, that amounts to 4-5k (did i mention 0% interest). in effect, i am getting the best stimulus package of all other groups of people in the country. rents are down substantially. if it stays for a few months, i can expect to lock in $100+ lower monthly rents.

 

[MelaNix12]

Just got an email from FedLoanServicing this morning. Looks like we were all wrong. Studentaid.gov says..

"Is there any reason why I would not want to suspend my payments?

If you are pursuing Public Service Loan Forgiveness or Income-Driven Repayment (IDR) forgiveness, you may not want to go into an administrative forbearance because the time spent in an administrative forbearance does not count toward the required payments."

FedLoan Servicing has been updated to reflect this. Knew it was too good to be true.

 

[MelaNix12]

StudentAid.gov/coronavirus that is the link FedLoan sent me in the email this morning. Unless that is not updated yet as well??

 

[BMBiology]

i win again. haven't been paying my student loans, and what do we get? trump gives us IBRers a free pass on 6 months worth of payments. for me, that amounts to 4-5k (did i mention 0% interest). in effect, i am getting the best stimulus package of all other groups of people in the country. rents are down substantially. if it stays for a few months, i can expect to lock in $100+ lower monthly rents.

You lose the day you take out 300 k for pharmacy school. BTW, if you make money from the stock market, your IBR goes up!

 

[confettiflyer]

Just got an email from FedLoanServicing this morning. Looks like we were all wrong. Studentaid.gov says..

"Is there any reason why I would not want to suspend my payments?

If you are pursuing Public Service Loan Forgiveness or Income-Driven Repayment (IDR) forgiveness, you may not want to go into an administrative forbearance because the time spent in an administrative forbearance does not count toward the required payments."

FedLoan Servicing has been updated to reflect this. Knew it was too good to be true.

Keyword: administrative forbearance.

Admin forbearance is not CARES Act forbearance.

See my post in the other thread (already discussed)


Sent from my iPhone using SDN

 

[BMBiology]

Just got an email from FedLoanServicing this morning. Looks like we were all wrong. Studentaid.gov says..

"Is there any reason why I would not want to suspend my payments?

If you are pursuing Public Service Loan Forgiveness or Income-Driven Repayment (IDR) forgiveness, you may not want to go into an administrative forbearance because the time spent in an administrative forbearance does not count toward the required payments."

FedLoan Servicing has been updated to reflect this. Knew it was too good to be true.

Great news for tax payers!

 

[confettiflyer]

Great news for tax payers!

lol don't be dumb

 

[babybull]

You lose the day you take out 300 k for pharmacy school. BTW, if you make money from the stock market, your IBR goes up!

that's if you let them use your tax returns. you can respond by mailing them your weekly/bi-weekly/monthly paycheck to have them calculate IBR based off that

quote from someone's thread on this forum today:
"Anybody else regretting actually paying your bills with the new developments lately?"