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The PSLF program cancels federal student loans for people who work in public-service jobs for 10 years, and the impact of relief is profound. In the process, borrowers forfeit many protections that come with federal student loans, including the chance to get their loans canceled. In one survey, more than one-third of respondents who refinanced their federal student loans said they eventually came to regret it. President Biden announced a plan to cancel $10,000 in student loan debt, but if you privately refinanced, you won't benefit. Most private student loans allow for some kind of "cosigner release" so no one else is on the hook for your loans.
The PSLF program cancels federal student loans for people who work in public-service jobs for 10 years, and the impact of relief is profound. In the process, borrowers forfeit many protections that come with federal student loans, including the chance to get their loans canceled. Recent changes to the law require private student loans to be discharged if you die, but that isn't the case with older loans. Most private student loans allow for some kind of "cosigner release" so no one else is on the hook for your loans. Refinancing companies make the system worse for everyonePrivate refinancing companies don't just hand out their loans to anyone.
Our experts answer readers' student loan questions and write unbiased product reviews (here's how we assess student loans). As the coronavirus affects Americans' finances, the federal government has put federal student loans in forbearance. Forbearance can be a great source of relief for people with federal student loans. David Klein, CEO of CommonBond (Update: Beginning with the 2022-23 academic year, CommonBond is no longer originating student loans nor offering refinancing), suggests three possible approaches to federal student loans during the pandemic. Come October, your federal student loan balance won't be lower, but you'll owe less on your most expensive debts.
Persons: Insider's, forbearance, David Klein, CommonBond, Klein, autopay, servicer, you've Organizations: Service, Loan Relief Locations: Wall, Silicon, forbearance
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