A few options for student loan forgiveness
Dear Liz: I have a rather ugly student loan predicament. You mentioned “the possibility of forgiveness” in a recent column. I feel very strongly that I am deserving (if I dare use that word) of partial or full forgiveness of my undergraduate loans, although the loans from my graduate studies sting quite a bit too. I am not sure whom to contact to tell my story. Do I ask my lender, or do I contact the federal government education department? I get beyond frustrated talking to my lender, as they have employees who can only read from a script and can never help with particular issues.
Answer: You don’t win federal student loan forgiveness with an effective sob story. You get it by volunteering, working in a high-need area or following the relatively new rules for erasing remaining balances after many years of on-time payments. You also can get your federal (but not necessarily private) loans discharged if you’re totally and permanently disabled, you die or your school closes before you get your degree.
FinAid.org maintains a list of some of the forgiveness and stipend options available. People who teach full time in low-income districts, for example, can have up to $17,500 of their Stafford or PLUS loans forgiven under the National Defense Education Act. Forgiveness options exist for health workers and attorneys who serve high-need areas. Students in the Army National Guard may be eligible for its repayment program, which offers up to $10,000 for repaying student loans. AmeriCorps, the Peace Corps and Vista also have stipend programs for student debt repayment.
In addition, the federal Public Service Loan Forgiveness program promises any remaining federal student loan balances can be erased after 10 years of payments. Eligible public service jobs include employment with federal, state or local governments or not-for-profit organizations designated as tax-exempt by the IRS. You can find more information about this program at the U.S. Department of Education‘s Federal Student Aid site.
Even if you work in the private sector, you can qualify for forgiveness after 20 to 25 years of on-time payments, depending on when you incurred the debt. Again, see the education department’s site for details.
If you’re finding your payments onerous, you may qualify for the “Pay as You Earn” or other federal income-based repayment plans. If you have private student loans, though, you have far fewer options and consumer protections. You may want to visit the Student Loan Borrower Assistance site run by the National Consumer Law Center to learn more about strategies for coping with this debt.
The hidden value of loose change
Dear Liz: I just had to giggle at the husband who wanted to save his coin change for an emergency. Yes, this seems so silly now, but back in the day prior to debit cards my mom started saving all her loose change in a coffee can when my husband and I got engaged. Ten months later, she had saved enough for my wedding dress! When we had our first child, we started saving all our loose change, and 10 years later, we had saved enough for a trip to Disneyland. Obviously, we are saving less and less change since we so seldom use cash anymore, but we still keep a coffee cup to collect the loose change and still manage to turn in about $100 a year to the bank.
Answer: The key is to regularly deposit the coins, rather than letting them pile up. But a few readers cautioned that it might be worth carefully sorting through older stashes of coins:
Dear Liz: You gave a good answer to the question about cans of coins. You also should advise the party that if the cans have older coins — pre-1965 — the value of those dimes, quarters and half-dollar coins is tied directly to the price of silver. At $20 per ounce, 90% silver coins are worth about fourteen times their face value. A dime would be worth about $1.40, a quarter about $3.50, and a half-dollar about $6. At the same silver price of $20, 40% silver half-dollars are worth about $2.50 each. If you use a commercial sorting service you will lose the value of these coins. If you sort them while watching TV as I do, you will recover it. Lastly, if you do roll the coins, return them to the bank immediately. If your house is burglarized, as mine was, the rolls of coins on your desk will be gone in an instant.
Answer: Ouch. Sorry for your loss. You aren’t the only one to find gold (or rather silver) in your coins:
Dear Liz: I inherited much loose change. I started going through it and found a nice can of Buffalo nickels (each worth more than a nickel) and 22 pounds of silver quarters (made before the sandwich coins) worth $7,744 less handling and processing fees. It still came to a tidy sum. Let your letter writer know that it may pay to sort through that mountain of loose change.
Questions may be sent to Liz Weston, 3940 Laurel Canyon, No. 238, Studio City, CA 91604, or by using the “Contact” form at asklizweston.com. Distributed by No More Red Inc.
