Student Loan Forgiveness & Repayment Plans: 2025 Guide for Georgia Borrowers

Georgia student loan borrowers are entering 2025 with new opportunities—and challenges—in federal loan repayment and forgiveness. This comprehensive guide covers the latest updates on the SAVE Plan, Public Service Loan Forgiveness (PSLF), Income-Driven Repayment (IDR) changes, and Georgia-specific programs. Ready to get answers, learn how to apply, and see real success stories? Let’s start.

2025 Loan Forgiveness Landscape for Georgia Residents

The Biden Administration rolled out significant changes to student loan policy for 2025. Here’s what’s new and what matters most for Georgia:

• SAVE Plan (Saving on a Valuable Education): Fast-tracked features with lower monthly payments and updated forgiveness criteria
• Automatic payment count adjustments and IDR account audits
• Expanded PSLF eligibility and streamlined documentation
• State-specific teacher and healthcare worker forgiveness opportunities

2025 SAVE Plan Updates: What Georgia Borrowers Need to Know

The SAVE Plan is now the centerpiece of federal student loan repayment. Here’s what’s changed for 2025—and how you benefit:

Need capital? GHC Funding offers flexible funding solutions to support your business growth or real estate projects. Discover fast, reliable financing options today!

Test Your Expertise: The Complexities of the 1031 Exchange

As a sophisticated real estate investor, you understand that the 1031 Exchange is a cornerstone strategy for tax deferral and wealth accumulation. But beyond the basics, the intricacies of the 1031 Exchange rules can pose significant challenges. This quiz is designed to test your in-depth knowledge and highlight critical nuances that separate casual investors from true experts in 1031 Exchange transactions.

Instructions: Choose the best answer for each question.

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Question 1: Understanding "Like-Kind" in a 1031 Exchange

Which of the following scenarios most likely qualifies as a like-kind property exchange under IRS Section 1031, allowing for 1031 Exchange tax deferral?

a) An investor exchanges a portfolio of publicly traded REIT stocks for a commercial retail building. b) An investor exchanges their primary residence, used for personal living for 15 years, for a duplex intended for rental income. c) An investor exchanges raw land held for appreciation in Texas for a stabilized apartment complex in Florida, both held for investment. d) An investor exchanges a classic car collection (personal property) for a single-family rental home (real property).

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Question 2: Navigating the 45-Day Identification Period for a 1031 Exchange

An investor sells a multi-family property on June 15th for a 1031 Exchange. According to the strict timelines, by what date must they identify their replacement properties to comply with the 1031 Exchange requirements?

a) July 30th of the same year, as the 45-day period includes weekends and holidays. b) August 29th of the same year, allowing for an extra 45 days if needed. c) December 12th of the same year, aligning with the 180-day completion period. d) January 1st of the following year, if they plan to file for an extension.

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Question 3: The Role of a Qualified Intermediary (QI) in a 1031 Exchange

Why is the engagement of a Qualified Intermediary (QI) absolutely critical for the validity of a 1031 Exchange?

a) The QI provides investment advice and helps the investor choose the best replacement property for their 1031 Exchange strategy. b) The QI acts as a liaison with the IRS, directly negotiating tax liabilities related to the 1031 Exchange process. c) The QI holds the proceeds from the relinquished property's sale, preventing the investor from having "constructive receipt" of funds, which would invalidate the 1031 Exchange. d) The QI provides legal and tax advice to ensure the 1031 Exchange is perfectly compliant

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Question 4: Understanding "Boot" and its Impact on a 1031 Exchange

An investor sells a commercial building with $500,000 in equity for a 1031 Exchange. They purchase a replacement property for $450,000, effectively reducing their debt by $50,000. What is the tax implication of this scenario within the 1031 Exchange framework?

a) The entire 1031 Exchange is disqualified because the investor "traded down" in value. b) The $50,000 in reduced debt is considered "boot" and will be immediately taxable as partial gain in this 1031 Exchange. c) There are no immediate tax implications, as the primary goal of the 1031 Exchange is only about the "like-kind" nature of the properties. d) The investor can defer the $50,000 as long as they pay off other personal debts with the funds, still qualifying for a full 1031 Exchange.

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Question 5: Advanced 1031 Exchange Strategies & Flexibility

An investor aims to sell a highly appreciated single-tenant retail property and replace it with multiple smaller, diversified multi-family units to spread risk. Which of the following 1031 Exchange identification rules best allows for this diversification strategy, maintaining eligibility for a 1031 Exchange?

a) The "Three Property Rule," where the investor can identify up to three properties of any value, regardless of the relinquished property's value, for their 1031 Exchange. b) The "200% Rule," allowing identification of any number of properties, provided their aggregate fair market value does not exceed 200% of the relinquished property's value for the 1031 Exchange. c) The "95% Rule," which states that if more than three properties are identified, the investor must acquire at least 95% of the aggregate value of all identified properties to qualify for the 1031 Exchange. d) All of the above are valid identification rules within a 1031 Exchange, offering flexibility for various investment strategies.

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The Ultimate DSCR Loan for Rental Property Quiz

Are you looking to expand your real estate investment portfolio? A DSCR loan might be the perfect tool to help you achieve your goals without relying on traditional income documentation. Test your knowledge with this quiz to see if you're ready to master the intricacies of a DSCR loan for rental property.

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Page 1 of 5

What is the primary factor a lender considers when approving a DSCR loan for rental property? A) The borrower's personal income and debt-to-income (DTI) ratio. B) The borrower's credit score and employment history. C) The property's potential rental income compared to its monthly expenses, known as the Debt Service Coverage Ratio. This is the key metric for a DSCR loan for rental property eligibility and approval. D) The total value of the borrower's existing investment properties and personal savings.

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How does a DSCR loan for a rental property differ from a conventional mortgage for a personal residence? A) A conventional mortgage requires a DSCR calculation, whereas a DSCR loan for a rental property does not. B) A DSCR loan for a rental property primarily focuses on the property's cash flow, allowing investors to qualify without traditional income verification, unlike a conventional mortgage which is based on personal income and liabilities. C) A conventional mortgage has a higher interest rate and stricter requirements than a DSCR loan for a rental property. D) A DSCR loan for a rental property is only available for commercial properties, not residential rental properties.

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What is an ideal Debt Service Coverage Ratio (DSCR) for a lender when evaluating a DSCR loan for a rental property? A) A DSCR of 0.75, indicating the property generates 75% of the income needed to cover its debt service. B) A DSCR of 1.00, meaning the property's income exactly equals its debt service. C) A DSCR of 1.25 or higher, as this indicates the property's income is greater than its expenses, making it a strong candidate for a DSCR loan for a rental property and providing a buffer for unexpected costs. D) A DSCR of 2.00, which is the standard minimum for all investment properties, regardless of location or market conditions.

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Which of the following expenses are typically included in the calculation of the Debt Service Coverage Ratio for a DSCR loan for a rental property? A) The property's mortgage payment (principal and interest), property taxes, and insurance, which are the core components used to determine if the property can support the debt. B) The property's mortgage payment, property taxes, insurance, and the borrower's personal credit card debt. C) The property's monthly rental income and all utility bills, regardless of who pays them. D) Only the principal and interest payment of the loan, as other expenses are not considered in a DSCR loan for a rental property calculation.

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Who would most benefit from using a DSCR loan for a rental property? A) A first-time homebuyer with a W-2 salary and a high debt-to-income ratio, who is looking to purchase a primary residence. B) A seasoned real estate investor with multiple properties who wants to expand their portfolio without using personal income to qualify, making a DSCR loan for a rental property the ideal financing solution for their needs. C) Someone looking to finance a primary residence with a low down payment and a government-backed loan. D) An individual with a very low credit score who cannot qualify for any other type of loan.

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Key Features

• Low Payments: Payments on undergraduate loans are capped at 5% of discretionary income (down from 10% on previous plans).
• Faster Forgiveness: Borrowers with original balances under $12,000 receive full forgiveness after just 10 years of payments.
• Interest Protection: No more runaway interest—unpaid monthly interest is waived after making your minimum payment.
• Family Size Adjustments: Increases the income exemption, meaning more borrowers in Georgia qualify for $0 payments.

Eligibility for Georgia Residents

You must have federal Direct Loans—including subsidized, unsubsidized, and consolidated loans. PLUS loans for parents do not qualify.

Step-by-Step: How to Apply for the SAVE Plan

1. Log in to studentaid.gov/idr/
2. Check your loan type and make sure they’re eligible Direct Loans
3. Fill out the online SAVE Plan application (takes ~10 minutes)
4. Submit income and family size details
5. Your servicer will calculate your new payment and update your plan (4-6 weeks typical processing)
6. Set up auto-pay to ensure on-time credit for forgiveness

Georgia Borrower Success Story: The SAVE Plan in Action

Tiara from Atlanta owed $29,800 in federal loans. Under the SAVE Plan, her payment dropped to $82/month. After receiving a credit for time in deferment, she’s tracking to full forgiveness in 2028. She says, “I can finally budget for my family and my future!”

Public Service Loan Forgiveness: 2025 Updates for Georgia Public Servants

✅ Small Business Resources 

• SBA – Small Business Administration
  https://www.sba.gov

• SCORE Mentors (Free Mentoring & Workshops)
  https://www.score.org
• Small Business Development Centers (SBDC)
  https://americassbdc.org

Are You an SBA Real Estate Loan Expert?

Test your in-depth knowledge on using SBA Loans for owner-occupied commercial Real Estate acquisition. These questions delve into the critical details that can impact your business's growth and financial strategy.

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Page 1 of 5

For an existing commercial property, what is the minimum owner-occupancy percentage required for an SBA 7(a) real estate loan, and does this specific scenario qualify?

A manufacturing company plans to acquire a 30,000 sq ft industrial real estate facility using an SBA 7(a) Loan. The company initially needs 18,000 sq ft for its operations and intends to lease out the remaining 12,000 sq ft.

A) 60%; Yes, it qualifies. B) 51%; Yes, it qualifies. C) 75%; No, it does not qualify. D) 60%; No, it does not qualify, as they are leasing out a portion.

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Which of the following sets most accurately represents additional cost categories that can typically be financed within an SBA 504 Loan for a commercial real estate project?

Hint: Beyond the straightforward purchase of a commercial real estate property, an SBA 504 Loan is highly effective for comprehensive projects.

A) Business inventory, working capital, and employee salaries. B) Building renovations, long-term machinery essential to operations within the property, and soft costs like architectural fees. C) Advertising expenses, short-term equipment leases, and utility deposits. D) Personal real estate investments, vehicles for personal use, and stock market investments.

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Between an SBA 7(a) Loan and an SBA 504 Loan, which program generally offers the lowest typical borrower down payment for a commercial real estate acquisition, and what is that common minimum percentage for established businesses?

A highly profitable professional services firm in a competitive market wants to purchase its office real estate with minimal upfront capital. The firm's owners prioritize cash flow and liquidity.

A) SBA 7(a) Loan; 15% B) SBA 504 Loan; 10% C) SBA 7(a) Loan; 5% D) SBA 504 Loan; 20%

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For new construction, what is the initial minimum owner-occupancy percentage required, and what is the maximum timeframe to meet the full owner-occupancy threshold, for an SBA Real Estate Loan?

A fast-growing tech startup plans to construct a new 50,000 sq ft headquarters using an SBA Loan. They will immediately occupy 35,000 sq ft and have a definitive plan to occupy the remaining 15,000 sq ft within two years as their team expands.

A) Initial 51%, full 80% within 5 years. B) Initial 60%, full 80% within 3 years. C) Initial 75%, full 100% within 1 year. D) Initial 51%, full 100% within 2 years.

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What is this crucial requirement, and what fundamental principle does it underscore for the lender?

When securing an SBA Loan for a commercial real estate purchase, principal owners with a 20% or greater ownership stake are almost universally required to provide a specific type of assurance beyond the collateral of the real estate itself.

A) A fixed-rate interest payment commitment, demonstrating long-term stability. B) A first-lien position on all personal assets, ensuring full recovery. C) A personal guarantee, signifying the owners' personal commitment to loan repayment. D) A business plan with projected revenue growth of at least 15% annually, showing future viability.

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PSLF is now more accessible than ever. Here’s what you need to know in Georgia:

• Monthly payment count adjustments: Retroactive credits for certain forbearance/deferment periods
• Expanded recognized employers—including government agencies, public health, non-profits, and some contractors
• Improved PSLF Help Tool for streamlined application

How to Qualify for PSLF in Georgia

• Work full-time for a qualifying employer (public or 501(c)(3) nonprofit)
• Make 120 qualifying payments (now easier thanks to IDR counting corrections)
• Submit the PSLF form annually using your Federal Student Aid (FSA) ID
• Certify your employment and keep records

2025 PSLF Application Steps

1. Check eligibility at studentaid.gov/pslf/
2. Prepare employer information and recent pay stubs
3. Use the PSLF Help Tool to fill out and generate your form
4. Submit the form for employer certification
5. Follow up with MOHELA (the dedicated PSLF servicer)

Georgia PSLF Success Story (2025)

✅ Real Estate Investor Resources

• AirDNA (Short-Term Rental Data)
  https://www.airdna.co

• Rentometer (Rent Comps)
  https://www.rentometer.com
• Zillow Research & Data
  https://www.zillow.com/research

DSCR Loan IQ Quiz!

Test your knowledge of Debt Service Coverage Ratio (DSCR) loans!

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Page 1 of 3

What is the primary factor a lender focuses on when approving a DSCR loan for an investment property? a) The borrower's personal debt-to-income (DTI) ratio b) The property's ability to generate enough income to cover its mortgage payments c) The borrower's credit score history over the past 10 years d) The total number of investment properties the borrower already owns

Page 2 of 3

If a property has a Net Operating Income (NOI) of $5,000 per month and its total monthly debt service (PITI) is $4,000, what is its DSCR? a) 0.8x b) 1.0x c) 1.25x d) 5.0x

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Which type of borrower most commonly benefits from using a DSCR loan? a) First-time homebuyers purchasing a primary residence b) Investors with a strong W-2 income and minimal tax deductions c) Self-employed individuals or those with complex income who want to avoid traditional income verification d) Homeowners looking to refinance their primary residence for a lower interest rate

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What's the most appealing aspect of a DSCR loan for your investment property financing needs?

A) No personal income verification (no W-2s or tax returns needed!)B) Approval based on the property's cash flow (DSCR)C) Faster closing times compared to traditional mortgagesD) Flexibility for self-employed investors and complex financial situations

Vote

 

Marcus, a Macon teacher, had $89,200 forgiven in March 2025 after 10 years in public education. Counting adjustments granted him 26 bonus payments for periods in economic hardship deferment due to Hurricane Michael impacts.

Income-Driven Repayment (IDR): All Options for 2025

Beyond the SAVE Plan, four IDR plans remain:

• SAVE Plan (recommended for most borrowers)
• PAYE (Pay As You Earn)
• IBR (Income-Based Repayment)
• ICR (Income-Contingent Repayment)

Key 2025 change: Most new applicants are guided to the SAVE Plan because of its superior benefits. However, some may benefit from remaining on older plans, especially if close to forgiveness.

Eligibility

• Most federal Direct Loan holders can switch IDR plans. Parent PLUS Loans, if consolidated, are eligible for ICR only.
• Georgia borrowers can certify income online or by mail annually. Tax returns are preferred, but pay stubs accepted.

Step-by-Step: IDR Plan Selection

1. Review your loans at studentaid.gov
2. Use the Loan Simulator to model payments under each plan
3. Apply for your chosen plan online
4. Update income and family size yearly
5. Track loan forgiveness progress in your FSA dashboard

Realistic Forgiveness Scenarios

Alyssa, Augusta nurse, started nursing school with $51,300 in loans. After eight years on IDR (initially $110/month, now $63/month on SAVE), she’s on track for total forgiveness in 2027 with no unpaid interest added.

2025 Federal Student Aid Program Policy Changes

• Automatic Account Audits to correct payment counts for IDR and PSLF
• Hardship-based forbearance and deferment periods may now count toward forgiveness (if borrower met certain criteria)
• Borrower Defense and School Closure Discharge expanded for students affected by closures/fraud
• Delinquency grace periods extended—forbearance options updated

Georgia-Specific Student Loan Assistance Programs

• Georgia Loan Repayment Assistance Program (LRAP): For public interest lawyers—up to $10,000/year in loan repayment support.
• Georgia Board of Health Care Workforce Loan Repayment: Medical, dental, and behavioral health professionals practicing in underserved rural areas can receive up to $25,000/year.
• Georgia’s State Teacher Forgiveness: Additional state funding for educators in high-need schools, particularly STEM and special education.

Check eligibility and apply through the relevant state program’s website:

• Lawyers: Georgia LRAP
• Healthcare: Board of Health Care Workforce
• Teachers: Georgia Department of Education

FAQs for Georgia Student Loan Borrowers

• Who qualifies for 2025 federal loan forgiveness? Federal Direct Loan holders in good standing enrolled in a qualifying IDR or PSLF track.
• Does Georgia offer additional loan relief? Yes, especially for teachers, healthcare providers, and public interest attorneys. State grants are in addition to federal forgiveness.
• How do I track my forgiveness progress? Log on to studentaid.gov, check your servicer’s portal, and use the PSLF Help Tool for accurate counts.
• What if my loans are in default? The “Fresh Start” initiative is extended—rehabilitate your loans to regain access to repayment and forgiveness plans.

Take Action: Maximizing Forgiveness and Repayment in 2025

The road to student debt freedom is clearer than ever for Georgia residents:

• Enroll in the SAVE Plan for lowest payments and fastest forgiveness
• Certify PSLF employment annually if in public service
• Explore state-specific LRAP, healthcare, and teacher programs
• Contact your loan servicer or studentaid.gov for personalized guidance

2025 is a pivotal year. Take proactive steps now to secure your student loan future—Georgia’s programs and the latest federal reforms are more accessible than ever!

Get a No Obligation Quote Today.

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