are student loan forgiveness programs legit
Myth: Forgiveness applies only to federal loans. While it’s true that private loan forgiveness programs are few and far between, some borrowers are able to settle private student loans for less than the full balance says Steve Rhode, founder of GetOutofDebt.org and a Credit.com contributor. Myth: Only consolidated loans can take advantage of public service loan forgiveness (PSLF). 1  Myth: Payments don’t count for PSLF until an employer certification form is completed. 2  Myth: If you are a teacher, you automatically qualify for PSLF. 3  Myth: Student loan forgiveness is for everyone.  Myth: Parents are out of luck. First, it helps to understand what student loan forgiveness entails. “Student loan forgiveness occurs when the federal forgives the unpaid balance of a federal student loan,” Fleischman explains. He points out that there are no federal programs that allow for the forgiveness of private student debt. 4 Ways to Spot a Student Loan Scam. Student loan forgiveness is a seductive promise for borrowers weighed down by thousands of dollars in debt. A growing pack of private companies offers student debt relief to grads, when in fact all they do is file paperwork to consolidate borrowers’ multiple federal loans into a Direct Consolidation Loan. BBB has recently received several calls on the scam and consumers are reporting receiving both calls and emails. A recent email reads, “Have you heard of the presidents new student loan forgiveness plans? Call Student Loan Services assistance center [number redacted]. To take advantage and see how much you can save. Student Loan Consolidation Scams. The most common student loan scam that has been hitting recent graduates is the student loan consolidation scam. This is a popular scam because many graduates have several student loans, and it sounds appealing to have them consolidated into one single loan and payment. The consolidation company does nothing and takes your money. If you want to consolidate your student loans, make sure you follow the correct process for consolidating your student loans. Advanced Fee Scams. Advanced fee scams are another student loan scam victimizing borrowers across the country. 4 Ways to Spot a Student Loan Scam. September 18, 2015 Loans, Student Loans. Student loan forgiveness is a seductive promise for borrowers weighed down by thousands of dollars in debt. But take caution when a website says you can “have your loans discharged,” or when an ad on the radio urges, “Call us today to qualify for loan forgiveness.”. The circumstances that lead to immediate student loan forgiveness are very specific, however. Any legitimate student loan forgiveness program you enter will likely require at least five to 10 years of service before you are eligible for discharge. “People can do so much without paying thousands of dollars to a private company,” says Fleischman. Education is the key. BBB offers the following tips to avoid student loan forgiveness scams: 1  Never pay upfront. 2  If you are having trouble paying your student loans, contact your lender directly. 3  Never give a third party power of attorney.  If it seems too good to be true...
Yes, any legitimate student loan forgiveness program you enter will likely require at least five to 10 years of service before you are eligible for discharge.