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

Are you a Maryland resident seeking the latest information on federal and state student loan forgiveness, as well as the newest repayment plans for 2025? Look no further. This comprehensive guide breaks down important updates to programs like the SAVE Plan, Public Service Loan Forgiveness (PSLF), income-driven repayment options, and unique Maryland student debt relief initiatives. We’ll provide step-by-step application processes and feature success stories to help you understand your path to student debt freedom.

2025 Federal Student Loan Updates: What Maryland Borrowers Need to Know

This year brings transformative changes to federal student loan policies:

• SAVE Plan (Saving on a Valuable Education): Major updates make repayment more affordable for lower- and middle-income Marylanders.
• PSLF Improvements: Streamlined requirements and more inclusive qualifying payments.
• One-Time Account Adjustment: Expanded forgiveness eligibility for borrowers with older or previously ineligible loans.
• State-Specific Relief: Maryland offers unique tax credits and loan repayment assistance programs (LRAPs) for qualified residents.

Federal vs. State Loan Forgiveness: A Quick Breakdown

The 2025 SAVE Plan: What’s New and How to Apply

The SAVE Plan has replaced REPAYE as the Department of Education’s flagship income-driven repayment (IDR) plan. Key features for Marylanders:

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.

Start Quiz

Page 1 of 5

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).

Page 2 of 5

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.

Page 3 of 5

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

Page 4 of 5

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.

Page 5 of 5

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.

Ready to send

Please provide your contact information to proceed.

Email Address *

First Name *

Consent *

Yes, I agree with the privacy policy and terms and conditions.

Submit

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.

Start Quiz

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.

Page 2 of 5

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.

Page 3 of 5

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.

Page 4 of 5

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.

Page 5 of 5

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.

Ready to send

Please provide your contact information to proceed.

Email Address *

First Name *

Consent *

Yes, I agree with the privacy policy and terms and conditions.

Submit

• Monthly payments capped at 5% of income above 225% of the federal poverty line (down from 10%).
• Unpaid monthly interest is no longer capitalized—no more balance increases due to interest for eligible borrowers.
• Forgiveness now possible after 10 years for borrowers with $12,000 or less in original principal (plus one additional year per $1,000 above $12,000, up to 20 or 25 years).
• Parent PLUS Loans are not directly eligible, but can qualify via consolidation into a Direct Consolidation Loan.

Step-by-Step: Applying for the 2025 SAVE Plan

1. Log in to studentaid.gov/idr/ with your FSA ID.
2. Select or update your income-driven repayment application and choose the SAVE Plan.
3. Submit proof of income—your prior year’s tax return or alternative documentation (pay stubs).
4. Certify your information annually to maintain eligibility.

Maryland Success Story: The Power of the SAVE Plan

Alana from Baltimore carried $27,500 in Direct Loans from her bachelor’s degree. On the new SAVE Plan, her monthly payment dropped to (she’s a social worker earning ,000). After 17 years, her outstanding loan balance will be forgiven, saving her over $15,000 compared to the Standard Repayment Plan.

Public Service Loan Forgiveness (PSLF): 2025 Policy Updates

PSLF continues to be one of the most powerful forgiveness options for Maryland public servants. Recent changes include:

• Expanded eligibility for payments: Periods of repayment under all IDR plans, and even some periods of deferment and forbearance, now count with the one-time account adjustment.
• Faster processing: Streamlined employment certification and communication with servicers for Marylanders working in hospitals, schools, government, and nonprofits.
• Parent PLUS eligibility: Parent borrowers can access PSLF after consolidating into a Direct Consolidation Loan and choosing an IDR plan.

PSLF Application: Step-by-Step (2025)

1. Consolidate federal loans (if needed) into a Direct Consolidation Loan.
2. Apply for an income-driven plan (SAVE, IBR, PAYE, or ICR).
3. Submit an Employment Certification Form annually at studentaid.gov/pslf/.
4. Make 120 qualifying payments (may include past payments with the adjustment).
5. Request forgiveness after 120 payments; loan forgiveness is tax-free under current law through at least 2025.

Maryland PSLF Success: A Real Example

✅ 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.

Start Quiz

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.

Page 2 of 5

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.

Page 3 of 5

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%

Page 4 of 5

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.

Page 5 of 5

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.

Ready to send

Please provide your contact information to proceed.

Email Address *

First Name *

Consent *

Yes, I agree with the privacy policy and terms and conditions.

Submit

James from Silver Spring, a teacher in a Title I school, consolidated ,000 in federal student loans. After 10 years on IDR and filing annual work certification, his remaining $41,000 was forgiven through PSLF.

Income-Driven Repayment (IDR) Plans: Updates for 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!

Start Quiz

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

Page 3 of 3

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

Ready to send

Please provide your contact information to proceed.

Email Address *

First Name *

Consent *

Yes, I agree with the privacy policy and terms and conditions.

Submit

Beyond SAVE, federal borrowers may qualify for:

• Income-Based Repayment (IBR): 10% or 15% of discretionary income, forgiveness after 20-25 years.
• Pay As You Earn (PAYE): 10% of income, must have borrowed after Oct. 2007.
• Income-Contingent Repayment (ICR): 20% of income or fixed over 12 years.

All IDR plans may qualify for forgiveness at the end of the repayment period and are eligible for the account adjustment that retroactively credits more payments in 2025.

Maryland State-Specific Loan Forgiveness & Repayment Programs

1. Maryland SmartBuy 3.0 Student Debt Relief

First-time Maryland homebuyers with ,000-,000 in student debt can receive state grants to pay off their loans at closing:

• Must purchase a qualifying home via SmartBuy partners.
• Debt must be paid in full at settlement; up to $20,000 in loan payoff assistance.
• Learn more & apply.

2. Maryland Loan Repayment Assistance Programs (LRAPs)

• Maryland State Loan Repayment Program (SLRP): Offers annual awards up to $50,000 for health professionals working in medically underserved areas.
• Janet L. Hoffman Loan Assistance Repayment Program: Offers attorneys, nurses, educators, and public sector workers up to $30,000 over three years in assistance.
• Applications typically open in spring, with awards disbursed in summer and fall.

One-Time Account Adjustment (2025): Maximize Forgiveness Eligibility

For borrowers who have been repaying their loans for years (including those with Federal Family Education Loans or Perkins Loans), the U.S. Department of Education in 2025 is completing the historic “one-time account adjustment.” This move counts past qualifying payments, periods of forbearance, and some deferments toward IDR and PSLF forgiveness eligibility—potentially qualifying hundreds of Marylanders for immediate loan discharge.

Action Steps: If you still hold non-Direct loans, consolidate before June 30, 2025 to benefit.

Teacher Loan Forgiveness for Maryland Educators

K-12 teachers in low-income schools may receive up to $17,500 in forgiveness on Direct or Stafford Loans. It can be combined with PSLF for even greater benefit. Apply via the Teacher Loan Forgiveness application.

Common Questions for Maryland Student Loan Borrowers

Can I qualify for both state and federal forgiveness?

Yes, many Marylanders use federal programs (e.g., PSLF) and state LRAPs or SmartBuy. Confirm you’re eligible for each and review tax implications.

Are forgiven loans taxable in Maryland?

Federal loan forgiveness is not taxable federally or by the state through tax year 2025. Always consult tax professionals for unique cases.

How do I avoid student loan scams?

Apply for forgiveness and repayment through studentaid.gov or Maryland.gov—never pay upfront fees.

Summary: What Maryland Student Loan Borrowers Should Do in 2025

1. Explore eligibility and apply for the SAVE Plan for the lowest monthly payments.
2. If you work in public service or nonprofits, track PSLF progress and use the one-time adjustment.
3. Review income-driven options and consider consolidation for older or ineligible loans.
4. Check Maryland’s state programs for grants, purchase assistance, and loan repayment awards.
5. Stay informed—loan forgiveness policy is rapidly evolving; utilize official resources and free counseling from agencies like MHEC or Federal Student Aid.

Have more questions about your Maryland student loans? Contact your loan servicer, the Maryland Higher Education Commission, or visit studentaid.gov for the latest programs and application portals.

Get a No Obligation Quote Today.

GHC Funding DSCR LOAN, SBA LOAN, BRIDGE LOAN

Contact GHC Funding Today. Main: 833-572-4327 Email: sales@ghcfunding.com

See Full Bio

DSCR LOAN SBA LOAN BRIDGE LOAN