Colleges and Universities

What can we do for your cohort default rate?

 

At College Debt Services, we believe in more than just informing students of their financial status. Our services begin with enrollment, focusing on financial literacy about loan forgiveness options, and continue through to the final enrollment process with a shift into eligibility placement. Our job is to make sure that Universities cohort default rate stays as low as possible.

 

College Debt Services reduces student loan cohort default rates by giving federal student loan borrowers the ability to qualify for the 10 year forgiveness program. A benefit for borrowers is having a shorter repayment term, most loan repayment lengths are 25 years. We will set borrowers up to make fewer payments (120 Payments vs 300 Payments).

 

When participating on a shorter repayment plan, the loan will accrue less interest. After completion of the 10 year repayment term, the remaining balance on the loan will be completely forgiven Income Tax Free. After completion of the 25 year forgiveness programs, the remaining loan balance will be forgiven as well. However the remaining balance principal plus interest that is forgiven will be considered as income.

 

The borrowers must pay the Income Tax on the forgiven loan balance. (This includes the total principal plus interest.) If the borrower does not have the lump sum of income tax money that is due by the end of 25 year repayment term. The IRS will start the process to penalties and accrue interest on unpaid taxes?

 

On average it takes a borrower 20 to 25 years to completely pay off their student loan debt. That means it takes 20 to 25 years for Colleges & Universities to receive accurate default rate statistics about their graduates. Let’s work together to help reduce 10 to 15 years off receiving accurate cohort default rates.