Frequently Asked Questions
Our GradFin Rep will break down your loan situation, provide a chart on what your new loan payoff looks like, answer questions about what terms are the best for your particular situation, and answer any application questions that come up.
Federal student loans are loans issued by the federal government such as Direct Subsidized Loans, Direct Unsubsidized Loans, Direct Grad and Direct Parent Plus Loans. Federal loans contain many borrower subsidies and protections issued by the federal government. For example, Direct Subsidized Loans usually contain lower interest rates and the interest does not accrue during undergraduate studies. Federal loans also have very favorable forbearance protections which allow borrowers to temporarily suspend payments during official financial situations. Federal loans also have favorable forgiveness policies for borrowers that work for a non-profit or government institution. In addition, federal loans provide many different repayment plans: extended, standard, and income-driven repayment plans. The repayment plans are designed to allow borrowers to repay their loans in a way that benefits their financial situation.
Private loans are issued by private financial institutions and do not contain many of the same benefits that are enjoyed by federal loans. However, private lenders to have individual forbearance and deferment policies that are designed to help borrowers during financial hardship. Private loans can be suitable for borrowers looking to reduce their interest rates and usually result in lower interest payments when borrowers refinance their loans.
GradFin student loan consultants can help borrowers weigh the pros and cons of federal versus private loans and discuss the best repayment plans for federal and private loan.
The Public Service Loan Forgiveness Program provides forgiveness on federal Direct student loans for borrowers that make 120 separate qualifying payments while employed full time by an eligible public service organization. An eligible public service organization is defined as a non-profit (501c3 tax-exempt organization) or a government entity (federal, state, local, or municipal organization).
The PSLF Program was passed into law in 2007 and encourages federal student loan borrowers to work in the public service sector. GradFin provides a membership program designed to help student loan borrowers stay in compliance with the complex filing rules and regulations. The Department of Education administers the PSLF laws and provides guidance on several issues related to the PSLF Program.
In March 2020, the federal government passed into law the CARES Act, which among many other things, provided for temporary relief of federal student loans. In general, the new law automatically suspended payments and interest rates for several months (March 13 through September 30). The CARES Act only impacted federally owned student loans such as Direct Subsidized, Unsubsidized, Grad Plus and Parent Plus loans. The CARES Act does not have any impact on private-held loans issued by private banks. The CARES Act allowed for PSLF borrowers to not make payments but still get credit for qualifying payments during the administrative forbearance period.
Products and Services
Whether you are a student or a parent looking to pay for tuition, GradFin can help. GradFin takes the time to compare all your loan options. Each loan is different — federal subsidized and unsubsidized loans, parent plus and private loans. GradFin will help you identify and navigate these loans so you can choose the perfect plan.
Private loans are another option to help you pay for education. Private loans differ by lender and by type of loan. GradFin can help you understand the terms of your loan(s), and provide a better understanding of your loans and options for future and current private loans.
The Public Service Loan Forgiveness (PSLF) Program forgives the remaining balance of your federal Direct Loans after making 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying public service employer. The PSLF Program helps you manage student loan debt while pursuing a career in public service. It is available to many employees working in public service, including all levels of government, school districts, public hospitals, non-profit organizations, and more.
GradFin helps keep you in compliance with the PSLF Program. GradFin ensures payments are tracked and audited from application to approval.
Whether you are refinancing a mortgage or purchasing a home, GradFin’s mortgage partner, Meridian Bank, has loan experts that have helped thousands of applicants save money by refinancing their mortgages or finding their dream homes. Set up a free consultation with an expert to review your mortgage options.