U.S. Departments of Education and Treasury Collaborate with TurboTax on Student Loans
Intuit’s TurboTax® Tax Software guidance offers a collaborating effort with the U.S. government to Raise Consumer Awareness of Income-Driven Repayment Options that are available for Student Loans.
The intent has been to encourage millions of TurboTax Student Users to explore all of their student loan repayment options to insure they are making the best financial decisions on how to repay their loans. This may also include the option of checking on eligibility options for lower monthly student loan payments as they prepare and submit their tax returns to the IRS.
TurboTax Promotes Income-Driven Student Loan Repayment Options
Support options for student loan repayment like myfedloan.org have a common thread of helping students successfully repay their loans. Many challenges exist for students when trying to avoid falling behind on student loan payments.
The U.S. Department of Education, and Department of Treasury, collaborate with Intuit Inc. TurboTax to increase awareness of available student loan repayment options that are income-driven plans.
These plans offer flexibility to federal student loan borrowers allowing them to repay student debt based on a sliding scale that adjusts their monthly payments to fit their budget. The intended message is to make students aware of the fact that they have other options. This includes the flexibility of repaying their federal student loans based on factors such as fluctuating income, and the growing families they may have.
The Department of Education’s Online Repayment Estimator, allows users to determine if they qualify to lower their monthly student loan payments through an income-driven repayment plan. Students that qualify can then sign up for an income-driven and other repayment plans based on their qualifications.
With ever rising levels of debt that student now incur, the need is escalating for options that provide student borrowers with the means to successfully repay their student loans under controllable and affordable income-driven plans.
Too many students are struggling to pay back their student loans as they combat rising college costs.
The intent is to make college more affordable, and improve the overall value for students and their families to get their education and still pay the bills.
This option is a opportunity for borrowers to take at look the big-picture and dip into their personal finances of check eligibility for other repayment options that can ease their financial stress. They can test the waters to see if they qualify to enroll in one income-driven plans that will meet their family’s budget.
With this program, federal student loan borrowers that are not in default have have had the option to enroll in an income-driven repayment plans that can restrict their monthly payments to a reduced percentage of their current discretionary income in order to make payments affordable.
Plans can be set to extend their repayment timeframe up to 20-25 years, and provide forgiveness of remaining student loan debt once this repayment period has ended. This helps these students responsibly manage their student loan debt, improve financial life, and become empowered to better manage taking control of their student loans.
The Department of Education offers resources to better equip financial aid counselors, and supply exit counseling for graduate students.