• Skip to main content
  • Skip to footer
  • Contact Us
  • Locate Us
  • Apply For A Loan
  • Events

SafeAmerica Credit Union

  • Checking
  • Savings
  • Loans
  • Services
  • Autos
  • Payments
  • Join
  • Log In

Stanford University

May 17, 2022 • By Kevin Alvarez

What Are Your Student Loan Repayment Options?

Even with news of payment extension to August 31, 2022, student loan repayment is on the  minds of millions of Americans.

If you're looking for a way to set up affordable student loan payments, there are income-based repayment plans that can help you get a handle on what you pay each month and provide a little room in your budget at the same time.

These plans let you make payments based on your income and the size of your family. Knowing what to expect, based on what you are making can relieve some of the pressure associated with paying back your student loans.

GreenPath Partner Experience Manager Doug Brady offers specific tips on student loan repayment options in the following webinar highlight:

The federal government uses incomes and family size to calculate your discretionary income. What is discretionary income? It's the difference between your annual income and 150% of the federal poverty guidelines for your family size.

Take a look at following plans, as well as your finances to understand the best repayment option for you.

As you look at student loan repayment plans based on your income, it's important to not only understand what the plans are but the difference between them. Remember, if you don't sign up for an income-based plan, you are automatically placed into the Standard Repayment Plan.

Revised Pay As You Earn (REPAYE)

Under REPAYE, monthly payments are calculated as 10% of your discretionary income. As with many federal student loans, you will have to update your income and family size annually. Another important distinction is that married tax filing status is NOT considered under a REPAYE plan. Also, no PLUS loans (Payments made to parents) can qualify for this option.

Pay As You Earn (PAYE)

Under a PAYE plan, your requirements will also be calculated as 10% of your discretionary income. As with REPAYE, you are required to update your family size and income each year. The difference between a REPAYE and PAYE is that married tax filing status is considered when your payments are calculated. Plus loans do not qualify for this plan either.

Income-based Repayment (IBR)

With an IBR plan, your payment amount will be based on either 10% or 15% of your discretionary income. The lower interest rate typically applies to new borrowers. You can also be considered for the lower rate if your federal student loan debt is high relative to your income and family size. The annual update of your family size and income is required with this option as well and married tax filing status IS considered. PLUS loans do not qualify for this plan.

Income-Contingent Repayment (IBR)

With an ICR, payments are based on 20% of discretionary income. In general, ICR plans are less popular than other income-based options because they often lead to higher monthly payments . Under an ICR, PLUS loans are considered  — the only option for loans from parents.

The best income-driven repayment plan can depend on your particular situation, the type of loans you have, when you borrow the money for your education.

As you look at your loan, financial situation, and other factors specific to you, you can use a tool from the federal government to simulate which income-based plan will offer the lowest monthly payments and the lowest total amount repaid over the life of the loan. Access the federal student aid site to help decide which option works best for you.

For more information on your student loan debt, a trusted nonprofit agency is a good place to start. There are resources available to help you understand loans, debt, and to help you set a path forward to financial health. You can also access valuable counseling.

Brought to you by GreenPath Financial Wellness

Greenpath Financial Wellness

SafeAmerica Offers Private Student Loans for College Students

Details

  • Competitive rates from community leaders
  • 1% interest rate reduction available in repayment period
  • Tax deductible interest payments
  • Cosigner release option available
  • Much more!

Proudly Presented By:

LendKey Logo

SafeAmerica Student Loans

January 21, 2022 • By Kevin Alvarez

Take These Steps With Your Student Loans

What steps should you take with your student loans – even with the extension of federal student loan payment relief measures? The pause continues on federal student loan debt collection and reduced interest rates on federal student loans to 0% until May 2022.

For those with government-held loans, the relief options provide a record-long “breather.”

It’s not too early to take steps in preparation for the relief programs to end. Borrowers should be ready to make student loan payments, even as policy makers discuss further extensions in the face of an increased number of borrowers becoming delinquent or defaulting on their loans.

Listed here are steps to move forward as protections end.

Take Inventory

How’s your memory in the midst of the longest payment freeze of federal student debt in history? As a first step, take the time to document how much you owe and who to contact about student loan balances.

To get current loan balances, log onto the National Student Loan Data System (NSLDS). The portal will display how much you borrowed, the type of each loan and interest rate, payment history, and the current loan servicer for each loan.

For private student loan information, jog your memory with your credit report, which tracks current and past credit obligations, including student loans. AnnualCreditReport.com provides borrowers with a free report from the three main credit reporting agencies: Equifax, Experian and TransUnion.

These resources are also useful to track current student loan servicers – the organizations that handle payment and administration of your debt.

Track Your Interest Rates

Student loan interest rates vary depending on the loan type and other terms such as the date the funds were first disbursed to you. Again, NSLDS is the go-to resource to discover the interest rates of your federal student loans.

To track interest rates on private student debt, contact each lender for fixed and variable interest rates. SafeAmerica Credit Union offers private student loans through our partner, Lendkey. Click here for current rates and loan programs.

Look at Affordability of Payments

After the lengthy payment pause ends in May 2022, consider overall affordability. Based on your current monthly income and expenses, you might find that resuming payments for federal student loans will stress your budget.

Explore options to lower monthly payments by switching to an income-driven repayment plan.

Private student loan lenders typically don’t offer income-driven plans, but they might offer alternative repayment plans on a case-by-case basis.

Loan forgiveness might be an option. In the last few months, the Department of Education overhauled the Public Service Loan Forgiveness Program. Teachers, nurses, first responders, service members, those working in nonprofit hospitals and other nonprofit and public service workers can potentially have their student loans forgiven

Explore whether you can take advantage of the changes to the public servant loan forgiveness program..

See if Loan Consolidation is Possible

Again, if affordability is an issue, consolidating your student loans sets you up with a single monthly payment.

For most borrowers, consolidation lengthens the repayment period, so your cost of borrowing will actually be higher since you will likely pay more interest over the long run.

This option will depend on your specific financial picture, so be sure to research all the pros and cons of loan consolidation.

Take the Steps that Work for You

It's great to have the added breather for your budget!

Looking ahead to later this year when the payment pause ends, our partners at GreenPath is a useful source of independent information.

Student loan counselors can suggest ways to manage an individual situation if you are feeling overwhelmed as you look to the May 2022 deadline.

This article is shared by our partners at GreenPath Financial Wellness, a trusted national non-profit


 

Greenpath Financial Wellness

Footer

Home

Home

  • Contact Us
  • Find A Branch
  • About SafeAmerica
  • SafeAmerica Leadership
  • Careers
  • COVID-19 Updates

Services

Services

  • Online Banking & Bill Pay
  • Mobile Banking & Mobile Deposit
  • Direct Deposit
  • Mobile Wallets
  • VISA® Debit Card
  • STARS Telephone Banking
  • eStatements
  • Investment Management
  • View Your LPL Account
  • Enterprise Car Sales
  • Order Checks

Banking

Banking

  • Checking
  • MoveUP Rewards Program
  • Savings
  • Money Market
  • Certificates
  • IRAs
  • Account Insurance
  • Youth Program

Community

Community

  • College Scholarship Program
  • Events
  • CU@Work Program

Resources

Resources

  • Rates & Fee Schedule
  • Calculators
  • Educational Videos
  • Financial Education
  • Discount Programs
  • Newsletter
  • Switch Kit
  • Travel Notification Form
  • Blog
  • Forms & Applications
  • Secure Document Upload
  • Financial Hardship
  • Foreclosure Prevention Strategies
  • Privacy
  • Disclosures
  • Report Website Errors

Loans

Loans

  • Auto Loans
  • Home Loans
  • VISA® Credit Card
  • Personal Loans & Lines of Credit
  • Student Loans
  • Refinance Your Existing Loan
  • VISA® Balance Transfer
  • Vehicle Release Information
  • Skip-A-Pay Program
  • Make A Payment

Protection & Insurance

Protection & Insurance

  • Auto, Home & Life Insurance
  • Accidental Death Insurance
  • Long-Term Care Insurance
  • Debt Cancellation
  • Vehicle Protection
  • Verify Insurance

Buttons

Follow Us

Follow Us

Facebook Twitter LinkedIn Instagram

Phone

(800) 972-0999

  • No. California: (925) 734-4111
  • Lost or Stolen Card 
  • Debit and Credit: (833) 933-1681

Routing Number: 321171757

NMLS#: 746366

Log In »

Logos

SafeAmerica is an Equal Housing Lender American Share Insurance Logo

Your savings insured to $500,000 per account. By members’ choice, this institution is not federally insured, or insured by any state government.

© 2023 SafeAmerica Credit Union. All rights reserved.

We use cookies to give you a more relevant browsing experience and improve our website. Using this site means that you agree with our Use of Cookies Policy. Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT