The 1099 form is a series of documents the Internal Revenue Service (IRS) refers to as “information returns.” There are a number of different 1099 forms that report the various types of income you may receive throughout the year other than the salary your employer pays you. If you’ve done any work as a freelancer […]

501(c)(3) Non Profit

Forgiveness is based not on the type of job but on the employer’s eligibility. Anyone working on a full-time basis for a qualifying employer at a public service organization, regardless of his or her job, may qualify. “Public service organization” is defined as a federal, state, local, or tribal government organization, agency or entity, public […]

ACH Payments

ACH payments are electronic payments made through the Automated Clearing House (ACH) Network. Funds move from one bank account to another with the help of an intermediary that routes funds to the final destination. Computerized payments can provide benefits to both merchants and consumers. Payments are inexpensive, they can be automated, and record-keeping is easier […]

Active School Deferment

If the borrower is attending at least half time as a regular student for a full academic year and intends to do so in the next academic year, he or she is entitled to a deferment for 12 months. This means that a school must continue to apply in-school deferment through the summer session, even […]

Adjusted Gross Income (AGI)

Adjusted gross income (AGI) means the borrower’s adjusted gross income as reported to the Internal Revenue Service. For a married borrower filing jointly, AGI includes both the borrower’s and spouse’s income. For a married borrower filing separately, AGI includes only the borrower’s income.   Source

Administrative Discharge

Under certain conditions, a federal student loan borrower may be relieved from further repayment obligations by having their federal student loans discharged. Discharge provisions are available under both the Direct Loan and FFEL programs. Loan discharge differs from forgiveness. Source

Administrative Forbearance

There are several types of administrative forbearances, all with their own requirements and maximum length. The administrative forbearances available are Americorps, general, internship/residency, loan debt burden or teacher forgiveness forbearance. The general and loan debt burden forbearances are the two that are awarded based on financial need. The internship/residency and teacher forgiveness forbearances require that […]

Administrative Garnishment

Administrative Wage Garnishment (AWG) is a debt collection process that allows a federal agency to order a non-federal employer to withhold up to 15 percent of an employee’s disposable income to pay a non-tax delinquent debt owed to the agency. Source

Administrative Offset

Administrative offset means withholding funds payable by the United States (including funds payable by the United States on behalf of a State government) to, or held by the United States for, a person to satisfy a debt. Debt as used in this section is synonymous with the term past-due support. (a) After trying to collect a claim […]

Administrative Review

Prior to 2001, guarantee agencies were required to follow a very certain set of actions in collecting a debt. Guaranty agencies were required to take these actions in the first 45 to 181 days after default. In 2001 the Department of Education made a number of changes to its rules. Specifically guaranty agencies were no […]