Friday, May 20, 2022

Are Student Loan Forgiveness Programs Legitimate

Don't Miss

Forgiveness With Revised Pay As You Earn

VERIFY: ‘New’ 2019 Student Loan Forgiveness Program won’t wipe away loans with Navient, Sallie Mae

Revised Pay As You Earn works much the same way as Pay As You Earn. Under this plan, your payments will be capped at 10% of your discretionary income. Undergraduate loans are forgiven after 20 years, while graduate school loans are forgiven after 25 years.

Unlike IBR and PAYE which require you to end up with a lower payment than on the standard plan, theres no such requirement for REPAYE anyone with eligible loans can apply, even if they end up paying more with an income-based payment. As a result, you could end up with high monthly payments on REPAYE if you suddenly start making a lot more money.

Military Student Loan Forgiveness And Assistance

Not only does the military offer loan forgiveness for Army and Navy doctors, but it also helps armed forces members and veterans. The Army, Navy, Air Force and National Guard all offer loan repayment assistance programs.

There are plenty of other programs for military student loan forgiveness, so make sure you know what you qualify for.

Tempting You With False Legal Claims

There are no situations in which a law firm can save you thousands by paying your loan directly to them. This is a scam and could lead you to waste money that wont put a dent in your loans principal. Usually these scams come from a debt relief company claiming that their law firm can save you money. This is false.

Scammers have many resources at their fingertips, so its not uncommon to see official looking emails and mailings promising lawsuit-based debt forgiveness. They use legal jargon and formal-looking letters and emails to try to trick debtors. The best rule is to never respond to any such claim.

You May Like: Refinance My Fha Loan

Submit A Complaint To Cfpb And Ftc

In addition to reporting the possible identity theft, you will also want to submit a complaint to the Consumer Finance Protection Board and Federal Trade Commission. Its important to document the scam in as many places as possible, including your State Attorney General. Not only will it help you verify you are a victim, these actions will alert the authorities and could potentially prevent others from being scammed.

How To Get Student Loan Forgiveness

Student Loan Repayment Programs

Like most student loan forgiveness options, parents with federal student loans can qualify for student loan cancellation. Specifically, parents who have borrowed a Parent PLUS Loan for their dependent child to attend college, for example, have several options to get student loan forgiveness. This includes:

  • public service loan forgiveness and
  • income-driven repayment

Don’t Miss: Drb Refinance Reviews

Expansion Of Student Loan Forgiveness Under The Limited Pslf Waiver

Public Service Loan Forgiveness allows borrowers to obtain student loan forgiveness after 10 years of employment for qualifying nonprofit or public organizations. The original PSLF rules were complicated and onerous, however. The programs requirements limit relief to borrowers who have specific kinds of federal student loans which must then be repaid under certain kinds of repayment plans . Borrowers would have to submit employment certification forms to get their payments counted as qualifying, and many reported numerous problems with the certification process. The PSLF program in general has suffered from poor administration and oversight, and the rules and requirements were not always properly communicated to borrowers. The result has been abysmally low approval rates, which never rose above the low single digits.

Next Steps: Finding Legitimate Student Loan Relief Resources

If you need assistance with your student loans, help may be available. You may even be able to get it for free if you look in the right places. Start by talking to your loan servicer to see what options may be available, such as loan deferment and forbearance.

If youre not sure who your loan servicer is, you can find out by logging into your Federal Student Aid account or calling the Federal Student Aid Information Centerat 1-800-433-3243. If you have a private student loan, contact your lender to see what relief options are available.

About the author:

Read More

  • Quick Tips for Your Credit Health
  • You May Like: Prosper Loan Denied After Funding

    Forgiveness Of Debt Based On Income

    IDR plans can help you pay off your student loans faster by setting your monthly payments at 10% to 20% of your discretionary income. However, after 20 to 25 years of qualified payments, you may be eligible for MOHELA debt forgiveness.

    In order to establish your monthly payment, these plans require you to recertify your income and family size every year.

    Keep in mind that IDR debt forgiveness will be taxed, so start saving now to avoid a tax bill later.

    Nurse Student Loan Forgiveness

    Researching student loan forgiveness programs can pay

    For nurses who serve in hospitals with a critical nursing shortage there are a number of programs to help repay part of your student loans. For students with private student loans the Nurse Corp Repayment program will pay up to 85% of a loan when certain criteria are met .

    More> > > Student Loan Forgiveness for Nurses

    Don’t Miss: How Much Can I Qualify For A Car Loan

    Student Loan Forgiveness Or Cancellation By Profession

    In addition to the public service loan forgiveness options listed above, you can get funds to apply to your student loans when you work for the National Health Corps. Many employers also offer student loan repayment programs as benefits. Itâs a good idea to check with your HR department to see if your employer offers this benefit for loan relief.

    Student Loan Forgiveness Programs For Teachers

    Both PSLF and Perkins Loan Cancellation are popular programs for teachers. But there are other student loan forgiveness programs available for teachers like the Teacher Loan Forgiveness program.

    This program offers partial forgiveness to teachers who work at a qualifying school. The amount of loan forgiveness you receive depends on what grade and subject you teach.

    Your loans must be in good standing and only direct loans and federal Stafford loans are eligible for loan forgiveness. And only loans taken out after Oct. 1, 1998 are eligible.

    And many states offer student loan repayment assistance for teachers. For instance, several states offer assistance to teachers who work in areas where there is a teacher shortage. And some states offer assistance to teachers who are willing to teach in-demand subjects such as math and science.

    Recommended Reading: Usaa Pre Qualify Auto Loan

    Student Loan Repayment For Doctors And Health Care Professionals

    The National Health Service Corps offers loan repayment assistance to qualifying health care profession. The program offers $50,000 in loan forgiveness to licensed doctors, dentists, and or clinicians who agree to work for at least two years in an eligible position.

    The Student to Service program is available to doctors in their final year of medical school. Youll commit to spending at least three years in a qualified position. In exchange, youll receive up to $120,000 of loan forgiveness.

    The Indian Health Services Loan Repayment Program grants up to $40,000 in loan forgiveness. In exchange, doctors agree to work for two years in an American Indian or Alaskan native community. And once those two years are up, you have the option to renew your contract and receive additional loan forgiveness.

    If you work primarily in a research position, you might want to look into the National Institutes of Healths loan repayment program. The military also offers loan forgiveness for doctors and health care professionals. And there are state programs available across the country.

    Is Public Service Loan Forgiveness Real

    Legitimate student loan forgiveness is real, but you ...

    The short answer to this question is: Yes. PSLF is real but unlike what scammers might have you think, it is a process that will take a long time before youâre approved. The criteria are also very strict, and not many people will qualify. If you do, you can be sure that payments made after the 120th qualifying payment will be refunded, and that your loan will be forgiven.

    Don’t Miss: Upstart Early Payoff Penalty

    Will Your Student Loans Get Cancelled

    You may be wondering whether Parent PLUS Loans would get cancelled through wide-scale student loan cancellation. Well, it depends. Sen. Elizabeth Warren and Senate Majority Chuck Schumer have proposed to cancel up to $50,000 of student loans for student loan borrowers. While this plan has stalled in Congress, theyre now hoping that President Joe Biden will sign an executive order to cancel student loans for millions of student loan borrowers. . Some parents may qualify, while others may not. . For example, any proposed student loan cancellation may only pertain to Direct Loans. Technically, Parent PLUS Loans may need to be consolidated first to qualify. Second, Warren and Schumers proposal imposes a $125,000 annual income cap. So, if you have Parent PLUS Loans are earn more than that income threshold, you wouldnt qualify for student loan cancellation. Currently, theres no indication that Congress or the president plan to cancel student loans for borrowers on a wide-scale basis. So, if youre looking for student loan relief, youll find more luck focusing on public service loan forgiveness or income-driven repayment plan.

    With temporary student loan relief ending soon, make sure you have a game plan for student loan repayment. Here are some smart options to pay off student loans faster:

    Dont Qualify For Student Loan Forgiveness Alternatives For Conquering Your Debt

    Not everyone qualifies for student loan forgiveness. If youre ineligible and struggling to pay your loans, consider other strategies for managing your debt.

    One approach is accessing the income-driven repayment programs mentioned above, since you can reduce your monthly payments significantly. But if you dont have qualifying federal loans, or if you need a complete pause from making payments, consider putting your loans in deferment or forbearance.

    You could qualify if you return to school, encounter financial hardship or have another eligible reason. Some private lenders will also put your loans into forbearance temporarily, so speak with your lender about your options.

    Also Check: Capital One Auto Loan Approval

    Student Loan Forgiveness Is Real

    There are legitimate government programs that borrowers can participate in to have their student loans forgiven. Once forgiven, their remaining balance is erased. Student loan forgiveness may also be called debt cancellation or discharge. All of these terms mean the same thing â your student loan balance goes away. There are several different programs available for student loan borrowers, and they each have their own set of rules. These include programs for:

    • Public service workers

    • People with disabilities

    • Parent borrowers

    There are also other programs, including forgiveness due to death and bankruptcy, though discharge of student loan debt in bankruptcy is rare. Each program has specific requirements. To have your student loans forgiven under one of these programs, youâll have to follow these rules carefully. Some steps apply to when you begin repaying your student loans and other need to happen annually each year that the student loan remains in repayment.

    If you have a student loan and are eligible for any federal student loan forgiveness programs, make sure that you know the rules and have a plan for ensuring that you follow them. Missteps can lead to disqualification from eligibility for forgiveness.

    You’ve Got Options If You Were Denied Pslf

    Biden expands student loan forgiveness eligibility

    If your application for Public Service Loan Forgiveness was denied, you may be able to receive loan forgiveness under the Temporary Expanded Public Service Loan Forgiveness opportunity.

    As part of this opportunity, the Department of Education reconsiders your eligibility using an expanded list of qualifying repayment plans.

    This TEPSLF opportunity is temporary, has limited funding, and will be provided on a first come, first served basis. Once all of the funds are used, the TEPSLF opportunity will end.

    Visit StudentAid.gov for detailed information on how to be reconsidered for loan forgiveness.

    Also Check: Usaa Car Calculator

    What To Do If You Have Been A Victim Of A Student Loan Forgiveness Scam

    Student loan scams are unfortunately very common. If you needed help and handed over your money or personal information to a fraudulent company, heres what you should do next:

    • Contact your servicer immediately. Call your servicer right away if you think your information has been compromised. Your servicer can help you revoke any third-party authorizations.
    • Contact your bank or credit card company. Next, notify your bank and credit card companies. They can place fraud alerts on your account to stop scammers from making transactions. You might also be able to get a refund for any fees you paid.
    • File a report with the appropriate agencies. Its important to file a complaint with the FTC, CFPB, and your State Attorney General. When you report fraudulent activity to the FTC, it will give you a list of steps you can take to protect your identity, too.
    • Monitor your credit report. Its a good idea to freeze your credit report with the three major credit bureaus: Experian, Equifax, and TransUnion. A credit freeze prevents scammers from opening accounts in your name. Be sure to keep an eye on your credit report to make sure nothing slips through the cracks.
    • Change your passwords. Change your passwords for your FSA ID, student loan account, and bank or credit union accounts. Make sure to use strong passwords that will be difficult for scammers to guess. This way, they wont have access to your information.

    We Tell You About Cash You Can Claim Every Week Sign Up For Our Free Newsletter

    Top Class Actions is a Proud Member of the American Bar Association

    LEGAL INFORMATION IS NOT LEGAL ADVICE

    This site provides information aboutthe law and lawsuits and is designed to help users safely copewith their own legal needs. Legal information is NOT the same aslegal advice – the application of law to an individual’sspecific circumstances. Although we go to great lengths to makesure our information is accurate and useful, we recommend youconsult a lawyer if you want professional assurance that ourinformation, and your interpretation of it, is appropriate toyour particular situation.You should consider all postings or writings at TopClassActions.comby staff or others as personal opinion only and NOT the advice of alawyer.Top Class Actions Legal Statement

    Various Trademarks held by their respective owners

    Please note: Top Class Actions is not a settlementadministrator or law firm. Top Class Actions is a legal news sourcethat reports on class action lawsuits, class action settlements,drug injury lawsuits and product liability lawsuits. Top ClassActions does not process claims and we cannot advise you on thestatus of any class action settlement claim. You must contact thesettlement administrator or your attorney for any updates regardingyour claim status, claim form or questions about when payments areexpected to be mailed out.

    Don’t Miss: Sss Loan Requirements

    Using Mohela Student Loan Forgiveness Program

    Nobody likes to pay a higher price than necessary. Those who dont make a lot of money or choose a career in public service may be able to benefit from MOHELAs debt forgiveness programs.

    In the following circumstances, you may be qualified to have a portion of your debt forgiven:

    • If youve been paying on time for 20 to 25 years and are on an income-driven repayment plan, you may be eligible to have the remaining balance on your loans forgiven. Keep in mind, though, that the forgiven sum is taxable income, so youll have to pay taxes on it.
    • You may be qualified for Public Service Loan Forgiveness if you work for the government or a non-profit organization, are on an income-driven repayment plan, and have made 10 years of qualifying payments.
    • Your debts may be eligible for partial or complete discharge if the principal borrower or a dependent student on a PLUS Loan dies.
    • Your debts may be discharged if your school shuts while you are enrolled and you are unable to finish your program as a result, or if your institution closes within 120 days after you withdraw.
    • You may be eligible to have your federal student loans forgiven if you are unable to work due to a disability or if you are a veteran who is unable to work due to a service-related condition.

    Youre Our First Priorityevery Time

    A Complete List Of Student Loan Forgiveness Programs ...

    We believe everyone should be able to make financial decisions with confidence. And while our site doesnt feature every company or financial product available on the market, were proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward and free.

    So how do we make money? Our partners compensate us. This may influence which products we review and write about , but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services.Here is a list of our partners.

    Don’t Miss: Can I Use Va Loan For Investment Property

    Spotting And Avoiding Student Loan Spam Calls

    Experts told CNBC that recipients of messages regarding student loan repayment, relief, or forgiveness should be skeptical.

    First, they said, dont be fooled just because the customer service representative has their personal or student loan information. This information can be purchased from the black market by student loan scam callers to lull borrowers into a sense of safety.

    Student loan forgiveness call recipients should also verify that the call or message came from a legitimate source by verifying that the websites are not fake, as well as the company.

    Finally, student loan borrowers should know that legitimate federal loan servicers will never charge an extra fee or payment to take part in a forgiveness program or to service their accounts.

    Student loan scam calls have been reportedly made referencing the Pathways Student Loan Program, which claims it is serviced by MOHELA, a student loan servicer authorized by the federal government, along with others that can be found on the FTC website.

    More articles

    Popular Articles