How soon can I start making payments on my student loans?

[TomTea31]

I filed chap 7 feb 29th of this year. I understand my loans go on deferment but I was already on deferment for a yr prior to filing. So I want to start paying as soon as I can. Also I am now in a career field that if I make my payment for 10 yrs on time the remainder of my loans are forgiven.

So my plan is to do a consolidation, and then do the income contingent payment or something similar so my payments stay low. After working in the eligible field AND making the payments for 10 years I should be free of the remainder.

OH and can I start the consolidation while I'm in bankruptcy?

[SMinGA2]

You will probably need to wait until they have your loans in a 'regular' status and not under bankruptcy protection.

Look into the Income Based Repayment program. Payment is based on household size & income (1040) from the prior year. Still has the repayment forgivement after 10 years for teaching, public service jobs. The big part is that payment is NOT relative to your student loan balance.

[chrisdfw]

I filed chap 7 feb 29th of this year. I understand my loans go on deferment but I was already on deferment for a yr prior to filing. So I want to start paying as soon as I can. Also I am now in a career field that if I make my payment for 10 yrs on time the remainder of my loans are forgiven.

So my plan is to do a consolidation, and then do the income contingent payment or something similar so my payments stay low. After working in the eligible field AND making the payments for 10 years I should be free of the remainder.

OH and can I start the consolidation while I'm in bankruptcy?

They probably will not let you do the consolidation until your bankruptcy is closed, even student loans are subject to the automatic stay.

Once that does happen, you can consolidate and start paying, you will have to request to have your deferment cancelled (this is true of any change in payment plan) to apply for the income based repayment.

I am doing the same thing with my loans, I work in a public service employer and have MASSIVE student loans, which is totally unrelated to how much I will have to pay, I pay my IBR payments for 10 years and walk. I knew that going into the last couple of years, hence the massive student loans.

[TomTea31]

They probably will not let you do the consolidation until your bankruptcy is closed, even student loans are subject to the automatic stay.

Once that does happen, you can consolidate and start paying, you will have to request to have your deferment cancelled (this is true of any change in payment plan) to apply for the income based repayment.

I am doing the same thing with my loans, I work in a public service employer and have MASSIVE student loans, which is totally unrelated to how much I will have to pay, I pay my IBR payments for 10 years and walk. I knew that going into the last couple of years, hence the massive student loans.

Do you have to work full time for 10 years to do this? I do work full time right now but I'd like to go back and get my Masters.

[chrisdfw]

Do you have to work full time for 10 years to do this? I do work full time right now but I'd like to go back and get my Masters.

To qualify for public service loan forgiveness you have to work full time in a public service job for 10 years. i would just plan to do so for 10 years after you finish the masters if that is your plan. In my field the most lucrative jobs are for universities anyway, and they are all either public or non-profit, so I would qualify anyway.

I wouldn't take out loans and change my career plans just to qualify, but my plan was always to work a university job, so I might as well borrow to the max and pay my IBR for 10 years and be forgiven the rest.