In early May a letter was signed defining proposals that would reform Public Service Loan Forgiveness (PSLF).
Borrowers working in a qualified public service job for a required amount of time can take advantage of PSFL, which is a relief program that forgives federal student loan debt.
If the borrower has made 120 qualifying on-time payments, then his remaining loan balance is discharged.
A letter was signed by dozens of U.S. Congress members, and senators requesting Secretary of Education Miguel Cardona to direct the department to make four major reforms to PSL and eligibility requirements:
- Making all federal student loans eligible.
- Making all repayment plans eligible.
- Waiver of restrictions at the time of forgiveness.
- Qualify borrowers automatically.
As the previous implementation failed, many qualifying borrowers were not able to access forgiveness through the program.
This proposal will result in a quantum jump in the program, which has been under huge scrutiny for a long number of years.
If the program is executed, millions of borrowers would be able to qualify and get relief through PSLF.
The lawmakers in Washington have made some changes to the program.
- To make all federal student loans eligible
- By making all repayment plans eligible
- At the time of forgiveness all restrictions to be waived
- Automatically qualify borrowers
Can we expect this PSLF reform proposal be approved?
There is no confirmation that these proposals will become legislation.
The only saving grace is since President Joe Biden has been in favor of revising pre-existing forgiveness programs there is a ray of hope.
The Department of Education has been guided by the president to revise the borrower to defense repayment program and the Total and Permanent Disability (TPD) discharge program.
Reference Source: Bankrate
https://www.compareclosing.com/mortgagenews/new-proposal-aiming-for-student-loan-forgiveness/
What is a First Mortgage?A primary or initial loan obtained for a property is termed a first mortgage.
A primary lien on the property is placed by the lender who funded the mortgage to buy a home.If in case of default in payment this lien gives the lender the first right or claim on the home.How does a First Mortgage Work?Depending on the type of mortgage, you’ll need to pay upfront, a percentage of its cost as a down payment.Then, regular monthly payments comprising of a portion of the principal and interest, homeowners insurance, and property taxes all need to be paid till the life of the loan.The first mortgage takes priority over any junior lien or second mortgage, attached to the property.So in case of default in payment, your first mortgage lender would have the first claim to the proceeds from the foreclosure sale.Then second mortgage lender can claim from the remaining proceeds.
If you have multiple liens then this chain of priority continues.However the pending property taxes will be repaid first before other claims, and if the borrower is filing for bankruptcy, then the court decides on the precedence of claims.How is a First Mortgage Different from a Second Mortgage?Both first and second mortgages have the property itself as collateral.The main difference being the first mortgage is used to buy the property, whereas a second mortgage can be used for many reasons like renovation, college fees, consolidating debts or healthcare costs, a vacation, or various other expenses.Sometimes a second mortgage is used to cover the down payment and closing costs.Second mortgages usually have higher interest rates compared to first mortgages.Home equity loans, and (HELOCs) are the two most common types of second mortgages.Reference Source: Bankratehttps://www.compareclosing.com/mortgagenews/all-about-first-mortgage/
For many students, a university or college degree comes at the price of a hefty student loan debt.
Paying it off becomes a top priority after graduation.
But when you will a stable source of income, the biggest challenge is to pay off the debt as soon as possible, while still covering your needs and saving up for the future.
These tips will make it easier.
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