If you’re a student loan borrower in the Sunshine State, you might have options for getting your student loans forgiven. In fact, Florida offers two student loan relief programs to qualifying professionals who live and work in the state. Plus, there are a number of federal loan programs worth exploring that could forgive your student loans. If you’re a Florida resident with education loans, read on to learn about your student loan forgiveness options.
2 Student Loan Forgiveness Programs in Florida
Florida offers two student loan relief programs for residents: the Florida Nursing Student Loan Forgiveness Program (NSLFP) and Florida Loan Repayment Assistance Program (LRAP).
1. Florida Nursing Student Loan Forgiveness Program (NSLFP)
NSLFP offers up to $4,000 in student loan forgiveness for up to four years to qualifying nurses who work in shortage areas. You must be a licensed practical nurse, registered nurse, or advanced registered nurse practitioner to be eligible. You also must be employed full-time at a qualifying site, which could include a public school, state medical facility, teaching hospital, or the Department of Health. If you qualify, this program will pay out $4,000 directly to your loan servicer every year.
2. Florida Loan Repayment Assistance Program (LRAP)
If you’re a practicing lawyer in Florida, you could qualify for Florida’s Loan Repayment Assistance Program. This LRAP offers up to $5,000 each year as a forgivable loan that you can use to pay down your debt. The program then forgives the loan on an annual basis. To be eligible, you must be employed at least half-time by a civil aid organization that’s receiving a grant from the Florida Bar Foundation. You also must continue to meet all of the LRAP’s requirements to get your loan forgiven at the end of the year.
Federal Student Loan Forgiveness Programs in Florida
While Florida’s state loan programs are limited to nurses and lawyers, other professionals might find student loan repayment relief with a federal forgiveness program. Options for federal loan forgiveness include the following programs.
Public Service Loan Forgiveness
The Public Service Loan Forgiveness (PSLF) Program forgives your entire federal student loan balance after 10 years of working in public service. You’ll need to work in a qualifying workplace, such as a nonprofit or government organization. Plus, you’ll need to make 120 payments on a qualifying repayment plan, specifically one of the income-driven repayment plans.
Teacher Loan Forgiveness
The Teacher Loan Forgiveness Program offers loan forgiveness for teachers in low-income schools and other qualifying settings. If you teach math, science, or special education, you could receive up to $17,500 after five consecutive years. Teachers of other subjects can get up to $5,000 in loan forgiveness.
Income-Driven Repayment Plans
The government will also forgive your student loan balance at the end of your term on an income-driven plan, such as Income-Contingent Repayment or Pay As You Earn. Income-driven plans extend your loan terms to 20 or 25 years while adjusting your monthly payments in accordance with your income. If you still have a balance at the end of your term, it could be forgiven. You might have to pay taxes on the forgiven amount, though taxes on forgiven loans have been waived through 2025.
Other Ways to Pay Back Student Loans
While forgiveness programs can offer major student loan relief, not everyone will qualify. If you have alternative career plans, for instance, you might want to explore different ways to pay back your student loans.
Income-Based Repayment Plans
Income-driven repayment plans can make your monthly student loan payments more affordable. There are four plans to choose from:
- Income-Based Repayment
- Pay As You Earn
- Saving on a Valuable Education (SAVE) Plan (this will replace the Revised Pay As You Earn Plan)
- Income-Contingent Repayment
Depending on the plan, your payment could be as low as 5% of your discretionary income. Some borrowers may even see their payments reduced to $0 on an income-driven plan. As mentioned, income-driven plans can end in loan forgiveness if you still have a balance at the end of 20 or 25 years. Plus, they’re the only federal repayment plans that qualify for PSLF.
Student Loan Refinancing
Another option is refinancing your federal and/or private student loans with a private lender. If you have strong credit, you could qualify for a better interest rate than you have currently. Lowering your rate has the potential to reduce your monthly payment and loan costs. There are both advantages and disadvantages of refinancing student loans, though. If you refinance federal loans, for example, you sacrifice federal plans and programs. After you refinance, your federal loans turn private, so they would no longer be eligible for income-driven repayment or PSLF. Make sure you don’t need any federal protections now or in the future before refinancing your federal loans, since you can’t reverse the process once it’s done. Recommended: How Student Loan Refinancing Works
The Takeaway
Getting your student loans forgiven could be a huge relief. Even partial forgiveness can go a long way toward making your loans more manageable and getting you out of debt sooner. But not everyone will qualify for student loan forgiveness programs. If you don’t plan to work in public service or a shortage area, for instance, your options for student loan assistance will be limited. Refinancing student loans could be a strategic move. Pursuing a lower interest rate through refinancing could make sense, as long as you don’t need access to federal plans and programs.
This article originally appeared on SoFi.com and was syndicated by MediaFeed.org.
Lantern By SoFiSoFi receives compensation in the event you obtain a loan, financial product, or service through the Lantern marketplace. This Lantern website is owned by SoFi Lending Corp., a lender licensed by the Department of Financial Protection and Innovation under the California Financing Law, license number 6054612; NMLS number 1121636. (www.nmlsconsumeraccess.org). This site is NOT owned and operated by SoFi Bank. Loans, financial products, and services may not be available in all states.All rates, fees, and terms are presented without guarantee and are subject to change pursuant to each provider’s discretion. There is no guarantee you will be approved or qualify for the advertised rates, fees, or terms presented. The actual terms you may receive depends on the things like benefits requested, your credit score, usage, history and other factors.*Check your rate: To check the rates and terms you may qualify for, Lantern and/or its network lenders conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, the lender(s) you choose will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.All loan terms, including interest rate, and Annual Percentage Rate (APR), and monthly payments shown on this website are from lenders and are estimates based upon the limited information you provided and are for information purposes only. Estimated APR includes all applicable fees as required under the Truth in Lending Act. The actual loan terms you receive, including APR, will depend on the lender you select, their underwriting criteria, and your personal financial factors. The loan terms and rates presented are provided by the lenders and not by SoFi Lending Corp. or Lantern. Please review each lender’s Terms and Conditions for additional details.Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website on credit (https://consumer.ftc.gov/credit-loans-debt)Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.¹SoFi’s Insights tool offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score provided to you is a VantageScore® based on TransUnion® (the “Processing Agent”) data.
Personal LoanSoFi Lending Corp. (“SoFi”) operates this Personal Loan product in cooperation with Engine by MoneyLion. If you submit a loan inquiry, SoFi will deliver your information to Engine by MoneyLion, and Engine by MoneyLion will deliver to its network of lenders/partners to review to determine if you are eligible for pre-qualified or pre-approved offers. The lenders/partners receiving your information will also obtain your credit information from a credit reporting agency. If you meet one or more lender’s and/or partner’s conditions for eligibility, pre-qualified and pre-approved offers from one or more lenders/partners will be presented to you here on the Lantern website. More information about Engine by MoneyLion, the process, and its lenders/partners is described on the loan inquiry form you will reach by visiting our Personal Loans page as well as our Student Loan Refinance page. Click to learn more about Engine’s Licenses and Disclosures, Terms of Service, and Privacy Policy.Personal loan offers provided to customers on Lantern do not exceed 35.99% APR. An example of total amount paid on a personal loan of $10,000 for a term of 36 months at a rate of 10% would be equivalent to $11,616.12 over the 36 month life of the loan.
Student Loan RefinanceSoFi Lending Corp. (“SoFi”) operates this Student Loan Refinance product in cooperation with Engine by MoneyLion. If you submit a loan inquiry, SoFi will deliver your information to Engine by MoneyLion, and Engine by MoneyLion will deliver to its network of lenders/partners to review to determine if you are eligible for pre-qualified or pre-approved offers. The lenders receiving your information will also obtain your credit information from a credit reporting agency. If you meet one or more lender’s and/or partner’s conditions for eligibility, pre-qualified and pre-approved offers from one or more lenders/partners will be presented to you here on the Lantern website. More information about Engine by MoneyLion, the process, and its lenders/partners is described on the loan inquiry form you will reach by visiting our Personal Loans page as well as our Student Loan Refinance page. Click to learn more about Engine’s Licenses and Disclosures, Terms of Service, and Privacy Policy. **NOTICE: If you are a federal student loan borrower you should take time now to prepare for your payments to restart, including the opportunity to refinance your student loan debt at a lower APR or to extend your term to achieve a lower monthly payment. Please note that once you refinance federal student loans you will no longer be eligible for current or future flexible payment options available to federal loan borrowers, including but not limited to income-based repayment plans or extended repayment plans. Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Auto Loan RefinanceAutomobile refinancing loan information presented on this Lantern website is from Caribou, AUTOPAY, Engine by MoneyLion, and each of Engine’s partners (along with their affiliated companies). Caribou, AUTOPAY, and Engine by MoneyLion pay SoFi compensation for marketing their products and services on the Lantern site. Auto loan refinance information presented on this Lantern site is indicative and subject to you fulfilling the lender’s requirements, including but not limited to: credit standards, loan size, vehicle condition, and odometer reading. Loan rates and terms as presented on this Lantern site are subject to change when you reach the lender and may depend on your creditworthiness, consult with the lender for more details. Additional terms and conditions may apply and all terms may vary by your state of residence.
Secured Lending DisclosureTerms, conditions, state restrictions, and minimum loan amounts apply. Before you apply for a secured loan, we encourage you to carefully consider whether this loan type is the right choice for you. If you can’t make your payments on a secured personal loan, you could end up losing the assets you provided for collateral. Not all applicants will qualify for larger loan amounts or most favorable loan terms. Loan approval and actual loan terms depend on the ability to meet underwriting requirements (including, but not limited to, a responsible credit history, sufficient income after monthly expenses, and availability of collateral) that will vary by lender.
BankingSoFi Lending Corp. (“SoFi”) operates this website in cooperation with Engine by MoneyLion presenting promotions for products and services offered by other banks, lenders, and financial institutions. If you select a promotion above, you will be connected to the website of the company offering the product. The promotions presented on this site are from companies that pay SoFi and Engine by MoneyLion compensation for marketing their products and services. This may affect whether a provider is featured on this site and could affect the order of presentation. Lantern and Engine by MoneyLion do not include all providers in the market or all of their available offerings. Click to learn more about Engine’s Licenses and Disclosures, Terms of Service, and Privacy Policy.
More from MediaFeed:
9 clever ways to pay off that student loan debt
Let’s talk about student loan payments. Woo-hoo! OK, it’s not the most thrilling topic, but know what is serotonin-boosting? Paying off that very last loan.
It’s the unglamorous work that goes on behind the scenes that make or break every business owner, athlete, or creative person. It is helpful to think about student loan repayment like any other big feat worth accomplishing.
It begins with knowing that paying down student loans in a smart and effective way can take a lot of planning, budgeting, and adapting.
While there is no single smartest way to pay off student loans, because everyone’s situation is different, there are steps that will put most borrowers in a position to pay off their student loans without too much pain and on a timeline.
Another goal could be to create a financial plan that includes your loans.
Here are nine steps to consider including in your student loan repayment plan.
fizkes / istockphoto
Keeping track of your student loans and other sources of debt can be tricky, especially if you are a recent graduate. Consider listing them. Include the student loan servicer, amount of the loan, monthly payment, interest rate, and when the loan should be paid in full.
If you aren’t sure what your monthly payments will be, you can use this student loan calculator to get a rough idea, or you can call your loan servicer.
If you have credit card debt or personal loans, include them on your debt list. With all of your sources of debt, you can then mark on a calendar the date that the monthly payments are due.
While you always need to make the monthly minimum payments on all debts (unless your student loans are within their grace period or are in forbearance), listing them allows you to identify which debts you may want to pay off first.
If you have high-interest credit cards adding up each month, a credit card consolidation loan may be a great option to look at, too.
Once your credit cards are paid off, you’ll want to think about whether your goal is to pay your loans off quickly, or to simply make the monthly payments until the loans are done. The former is one way to save on interest over time.
Some folks do prefer to pay only the minimum monthly amount on their student loans so that they can save a little for other things.
DepositPhotos.com
It can take time and effort to develop a monthly budgeting system that works for you, but it is doable, and totally worth it.
To get started, track your monthly cash inflows and outflows for two months. Total how much money you spent in each category, including debt payments like student loans.
Once you have a general idea of what you’re spending in each category, you can begin to build a budget framework. For example, if you spend $300 on groceries one month and $350 the next, you can now set a realistic grocery budget. Leave room for annual and quarterly expenses as well as incidentals.
With a budget that is built to include student loan payments, you’ll be more equipped to make all of your payments on time and know how much is available to spend on other wants and needs. Also, understanding how you’re spending will allow you to identify the areas where you’re overspending.
DepositPhotos.com
Hopefully your student loan payments are set up to be automatically deducted from your bank account. If they aren’t, you can contact your student loan servicer to set up autopay. That way you won’t miss a payment because you forgot or are somewhere where you can’t access the internet.
Remember, missed or late payments will negatively affect your credit score. Damaged credit could preclude you from opportunities in the future, such as being able to refinance your loans.
Many loan service providers offer a discount if you arrange to autopay. When you sign up, ask if such a discount is available.
Youngoldman / istockphoto
Paying more than the minimum monthly payment can be a great strategy if your goal is to pay off your loan faster than the stated term. You’ll also save on interest over the life of the loan by paying it off sooner. Even small amounts can make a difference.
To do this, instruct your loan servicer to apply any extra payments to the loan principal, or adjust your automatic monthly payment to a higher amount and clarify that you want that extra money dedicated to the principal.
Make sure, after the next month’s payment, that the money was indeed put toward the loan’s principal.
Recommended: Why Making Minimum Student Loan Payments Isn’t Enough
DepositPhotos.com
Increasing your monthly payment isn’t the only way to put a dent in your loans; at any point, you are allowed to make a lump sum payment toward the principal.
You could put your tax refund, holiday or birthday money, work bonuses, or inheritance money toward your student debt.
DepositPhotos.com
Most federal student loans come with a 10-year repayment plan unless you choose otherwise.
Income-driven repayment plans base payments on discretionary income and family size. The plans lower monthly payments by extending the length of repayment to 20 or 25 years, after which any remaining loan balance is to be forgiven.
Even though your monthly payments are lower, you will pay more interest over time (longer loan terms mean more interest payments, after all). So, it’s not a great choice if you want to pay off your student loans quickly or pay as little interest as possible, but it is available to those who are having trouble making their monthly payments.
If you are planning to use the Public Student Loan Forgiveness (PSLF) program for your federal student loans, you will need to select one of the income-driven repayment plans.
PeopleImages
When you refinance one or more student loans, a private lender like a bank, credit union, or online company pays off your current loans and issues one new student loan, ideally at a lower interest rate. A lower rate could mean substantial savings over the life of the loan.
With federal student loan consolidation, on the other hand, the government bundles your federal student loans into one, using a weighted average of the interest rates, rounded up to the nearest one-eighth of a percentage point.
It’s important to note that by refinancing your federal student loans to a private student loan, you will not be able to access federal programs like income-driven repayment plans, PSLF, and government deferment or forbearance. If you don’t need any of those benefits, a lower rate gained by refinancing could be worthwhile.
Exploring refinancing with a private lender takes little time and doesn’t cost anything.
Damir Khabirov / istockphoto
With any pay raise, you can use the extra income toward your financial goals. This could mean increasing the monthly amount you pay toward your student loans or making a lump sum payment.
How much money you earn is an important factor contributing to your financial stability and ability to pay down your student debt. While budgeting is important, so is knowing your worth and asking for more when you deserve it.
If you haven’t already, start keeping track of your successes so that at your next compensation conversation, you have concrete examples on why you deserve a salary bump.
DepositPhotos.com
Although student loan repayment help is not as widespread as retirement or health care benefits, more employers are offering that perk to attract and retain employees.
Whenever you’re comparing job offers, it’s a good idea to compare benefits packages; although they’re not flashy like a big salary or company equity, benefits can be just as valuable.
If you’re looking for a new job, you could include student loan repayment help in your search. While it obviously shouldn’t be your only consideration, it’s great to have an idea of what you’re looking for in an employer.
Recommended: Finding Jobs That Pay Off Student Loans
DepositPhotos.com
What is the smart way to pay off student loans?
To pay off any loan, it’s smart to look at the interest rate and repayment term. If you can manage the monthly payments, a short term and a low rate is a winning combo.
If the payments are too painful and a longer term is needed, it could be smart to make extra payments of any amount whenever you can.
The PSLF program forgives any remaining Direct Loan balance after 10 years of on-time payments and qualifying employment. That could be seen as a smart way to pay off federal student loans if a graduate commits to working for a government or nonprofit employer, but the program has had a 98% applicant denial rate.
How can I pay off $100k in student loans in five years?
Say what? Well, it has been done. It might take sacrifice (moving in with relatives, no eating out, no new car), putting chunks that would normally go to rent toward student loan debt, staying motivated by watching and listening to others’ stories of debt repayment, refinancing one or more times, and getting aggressive about payments.
Most refinance lenders will offer a lower rate for a shorter loan term. Of course, the shorter the term, the higher your monthly payments will be, but the less costly the loan will be. A borrower might find that a variable rate, which usually starts lower than a fixed rate, pays off with a short-term loan.
How do I pay off a five-year loan in two years?
By paying extra toward the principal, in dribs and drabs or in a lump sum, and/or refinancing to a lower rate. Federal law prohibits prepayment penalties for federal or private student loans, so that’s not a worry.
To keep your student loan servicer from applying extra amounts to the next month’s payment, tell your servicer, by phone, mail, or online, to apply any extra payments to the loan principal.
depositphotos.com
Refinancing is among the ways to pay off student loan. Take a close look at your student loan balance and the rates you’re paying, and then check your refinance rate.
Learn More:
This article originally appeared on SoFi.com and was syndicated by MediaFeed.org.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 Opens A New Window.(Member FDIC), and by SoFi Lending Corp. NMLS #1121636 Opens A New Window., a lender licensed by the Department of Financial Protection and Innovation under the California Financing Law (License # 6054612) and by other states. For additional product-specific legal and licensing information, see SoFi.com/legal.
SoFi Student Loan Refinance
IF YOU ARE LOOKING TO REFINANCE FEDERAL STUDENT LOANS PLEASE BE AWARE OF RECENT LEGISLATIVE CHANGES THAT HAVE SUSPENDED ALL FEDERAL STUDENT LOAN PAYMENTS AND WAIVED INTEREST CHARGES ON FEDERALLY HELD LOANS UNTIL SEPTEMBER 1, 2022 DUE TO COVID-19. PLEASE CAREFULLY CONSIDER THESE CHANGES BEFORE REFINANCING FEDERALLY HELD LOANS WITH SOFI, SINCE IN DOING SO YOU WILL NO LONGER QUALIFY FOR THE FEDERAL LOAN PAYMENT SUSPENSION, INTEREST WAIVER, OR ANY OTHER CURRENT OR FUTURE BENEFITS APPLICABLE TO FEDERAL LOANS. CLICK HERE FOR MORE INFORMATION.
Notice: SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income-Driven Repayment plans, including Income-Contingent Repayment or PAYE. SoFi always recommends that you consult a qualified financial advisor to discuss what is best for your unique situation.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
DepositPhotos.com
diego_cervo / istockphoto
Featured Image Credit: DepositPhotos.com.
