How Trump Looks to Change the Student Loan Landscape in 2019

Written by adminSeptember 6, 2018
Student Loan Consolidation

Yesterday, we reported on President Donald Trump’s new law designed to help students with a disability. Making student loan forgiveness tax-free for the permanently disabled is an excellent start. However, what other ideas does he have for the future? How will these plans affect you?

Just a quick note: these are only proposals. No laws have been signed or changed. Remaining vigilant about fluid shifts within the industry is essential. Let’s look at three areas where Trump hopes to get involved with the student loan crisis.

1) Will It Be the End of Student Loan Forgiveness?

From the beginning, President Trump planned to do away with forgiving student loans. Of course, the exception is, if you cannot pay for your loan due to a disability. Otherwise, should the individual be responsible for their taxes? Is it fair that a student racks up $100,000 in debt, but it comes at a cost to taxpayers?

Betsy DeVos, the U.S. Secretary of Education, doesn’t feel taxpayers should foot the bill. With the president, they hope to cancel student loan forgiveness soon. They attempted to do just that with their first budget proposal. They decided to keep it another year in a compromise with Democrats to get the 2018 budget passed.

As of right now, the law is intact. For how long, no one knows. Trump and DeVos are already looking to cut it from the 2019 budget. So, if you’re hoping to get your student loans forgiven, call Financial Helpers today. We can help you go over your options while this option is still available to you. Call at the number below:

Call Now 844-332-2079

2) A Restructure of Repayment Plans in the Works

Currently, there are two ways to repay your loans. PAYE (Pay As You Earn) and REPAYE (Revised Pay As You Earn). These two plans are complicated and confusing. Trump hopes to fix that by combining the programs into a more straightforward single plan. As the two programs are currently separate, they differ on the amount of interest paid, and how long it will take to pay back the loan.

http://financialhelpers.com/president-trump-has-changed-student-loan-forgiveness-laws/

Students need a plan of action to repay their student loan successfully. They should prepare for every outcome before they decide to borrow the money, rather than being blindsided after they graduate. Knowing how the repayment program works, the future potential changes will give the student an upper hand.

3) Trump Wants to Give Students Better Borrowing Choices

If you think removing student loan forgiveness options is a bad idea, Trump may have a better opportunity instead. The president wants to give a boost to the private sector. It boosts competition and can lower prices. He hopes to inspire the same for student loans. Moreover, it might just work.

Right now, the federal government has control of the loans. Trump believes that they try to profit too much off of a student’s misery. This opens the doors for private lenders to get involved, and it’s going to give students better (and cheaper) options.

In all, the student loan debt problem is going to remain unsolved for some time to come. As long as the government continues to subsidy colleges and universities, the prices will keep climbing. Each administration seems to have their ideas about how to fix the problem.

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President Trump Has Changed Student Loan Forgiveness Laws

Written by adminSeptember 5, 2018
Student Loan Consolidation

Student loan forgiveness programs can be helpful to many students who struggle under a mountain of debt. Attempts were made by the Obama administration to ease the burden somewhat, but the epidemic continues to get worse. 44 million U.S. citizens carry over $1.5 trillion worth of debt.

Despite these astonishing numbers, the Trump administration came out swinging for the financial instructions. The student loan watchdog, who protected students from scams, abruptly resigned. He cited in his resignation letter that the federal government no longer cared about struggling students.

This news can be unsettling for students. New student loan forgiveness laws were within reach, but the Trump administration seems hellbent on destroying them. Thankfully, in signing the latest budget for 2018, Trump was able to compromise and leave current laws in place. How long they will last, no one truly knows.

One Positive Change for Student Loan Forgiveness

It’s important to note that while Trump targeted these laws, he hasn’t done anything negative yet. Proposals aren’t law, so students should continue watching what’s going on. Financial Helpers is available to help you in this process. All it takes is one phone call to see if you qualify for student loan forgiveness programs. Our team is made up of debt experts who will take you through your list of options and get you on the path towards financial freedom. Give us a call at the number below:

Call Now 844-332-2079 

Despite showing a willingness to cut programs to save money, President Trump made one big positive move in the right direction.

On January 1st, 2018, Trump’s Tax Cuts and Jobs Act went into effect. If it’s one thing the president has been great at, it’s been helping to grow the economy. The Tax Cuts and Jobs Act has done precisely that. It cut a lot of red tape, regulations, and taxes for business owners. Even small businesses have benefited tremendously from this law.

This law also helps those seeking student loan forgiveness. It made the death and disability discharge tax-free for students. Why is this important and how does it help? Let’s take a look at what it does and the advantage it gives students.

What is the Death and Disability Discharge?

Under current student loan forgiveness laws, you’re able to have your loans wiped away under specific qualifications. For example, if you end up permanently disabled or die, your loans are forgiven. It’s as simple as that. However, other types of disability aren’t as clear-cut, and forgiveness can be more difficult to obtain.

According to the Department of Education, you must prove your permanently disabled, as some disabilities can be temporary. Here are some of the guidelines:

• If you have any impairment related to service in the military. The Department of Veterans Affairs will have to certify you’re 100% disabled and unable to work.
• If you receive Supplemental Security Income or Social Security Disability Insurance and your new review is 5-to-7 years out.
• You have a doctor who certifies that you are 100% disabled and your condition will last longer than 60 months.

http://financialhelpers.com/trump-administration-signs-massive-student-loan-forgiveness-bill/

These are conditions that will make it nearly impossible for the student to repay their loans so that the government will give them a pass. What they may not realize is, having debt forgiven is considered taxable income.

Tax Implications of Student Loan Forgiveness

Any forgiven debt, including student loan debt, is considered by the government to be income you didn’t earn. You’d have to fill out a 1099-C and report it as such. It can raise the amount of taxes you owe by tens of thousands of dollars, depending on how much you had forgiven. This is a significant obstacle for anyone with a disability.

Worse yet, under the Parent PLUS Loan, parents who have a child die can have their loan forgiven. That sounds great, but the parents would still be on the hook for paying the tax hit that comes with it.

President Trump’s Death and Disability Discharge provision in the new law is a win for borrowers. They will receive student loan forgiveness that’s tax-free, so they aren’t suffering from thousands in extra charges. This problem is massive in another way: disabled people can lose their benefits if they have additional income.

Disabled individuals often receive both state and federal benefits to help with care. If they were to have their student loans forgiven suddenly, that would count as income. That much ‘income’ reported could cut their benefits altogether. This law is incredibly helpful for those in need of assistance.

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The Student Loan Watchdog Has Abruptly Resigned

Written by adminSeptember 4, 2018
Student Loan Consolidation

You may not know who Seth Frotman is, but he was a beacon of hope for many who struggled with their student loan debt. He was put in charge of a department in the Consumer Financial Protection Bureau designed to protect students against unfair and deceptive practices.

Frotman’s primary job was to assist borrowers of student loans by resolving complaints against private lenders. He prevents students from getting scammed. Of the thousands of claims of wrongdoing by lenders, he read them all and responded accordingly.

Frotman should be considered a hero for consumers everywhere. He oversaw the return of over $750 million to students. On September 1st, Frotman is officially retired from his role as ombudsman. The reason why he left should upset and terrify everyone who has a student loan.

Why Did the Student Loan Watchdog Quit?

You may be wondering why such a hero would quit. If he was genuinely helping students recover money after improper student loan practices, he should continue his work. However, as he put it, the government under the Trump administration no longer cared. In his resignation letter, Frotman blasted the current regime for handcuffing his ability to solve problems.

“It has become clear that consumers no longer have a strong, independent Consumer Bureau on their side. Unfortunately, under your leadership, the Bureau has abandoned the very consumers it is tasked by Congress with protecting. Instead, you have used the Bureau to serve the wishes of the most powerful financial companies in America,” the letter read.

http://financialhelpers.com/5-student-loan-debt-statistics/

Sadly, the CFPB’s former protector no longer believes the bureau is empowering students and their families to make informed financial decisions. The government is instead backing the financial industries and letting them get away with murder. This problem is hurting students and their ability to overcome massive amounts of student loan debt.

What to Do Next

Thankfully, there are still options available to help protect those with student loan debt. For one, Financial Helpers is available to help you navigate the troubling waters. If you want to know what your options are, or whether you qualify for loan forgiveness, give us a call. You can reach us at the number below.

Call Now 844-332-2079

The best thing you can do is remain vigilant and understand your options. There are currently over 44 million borrowers in the U.S. Over 10% have defaulted on their loans. With each passing year, the amount of average debt each student carries grows. The situation is only getting worse.

As student loan debt crosses the $1.5 trillion-mark, federal protection is more critical than ever. One wrong move in handling your loans can hurt your credit score. Whatever you do, don’t take a passive approach to your student loans. Defaulting your loan is the worst thing you can do. Now with fewer protections, they can come after you harder than ever. They can garnish your wages and take your tax return. Don’t let the sharks ruin your life. Call Financial Helpers today.

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The Student Loan Debt Problem is Worse than We Could Imagine

Written by adminAugust 31, 2018
Student Loan Consolidation

It might seem like the title of this article is a sensational headline to instill fear. In reality, the student loan debt problem continues to grow out of control in this country. According to the National Center for Education Statistics, the typical student will loan $6,600 this year. That averages out to be around $22,000 by the time they graduate.

It’s one thing to look at the numbers. Most college students have already resigned to the fact that they will have student loan debt once they graduate. Yet, it’s the default rate that’s concerning. In 2012, just over 10% of students defaulted on their loans. Over the next few years, that rose by 16% and continued to climb.

Student Loan Debt is Crippling Students

Overall, as many as 30% of the students who graduated struggled to repay loans. $23 billion was owed and $9 billion of it was in default this past year alone. This is a growing problem that has no end in sight. It is reaching crisis-levels as students become unable to pay back their loans. The number of defaults is rising significantly.

The worse part about it is, the government is overlooking it. Schools continue to rake in major profits in federal aid. Because they are subsidized, they can continue to raise the cost of college for everyone. Federal laws have attempted to keep colleges accountable. It requires them to keep the number of defaulted borrowers below 30% to remain in the student loan program.

There is hope for some students, but they must know their options. Student loan forgiveness is one option available, as well as lower monthly payments and interest. To find out if you qualify, call Financial Helpers today at:

Call Now 844-332-2079 

High Default Rates

Back in 2012, the government still cared about keeping the default rates low. 93 schools were at risk of being kicked out of the aid program due to having high default rates. In just a few years, the feds decided to stop tracking and suddenly the number rose to 636 schools. What do the colleges care? The government gives them money.

Also: http://financialhelpers.com/student-loan-debt-crosses-the-1-5-trillion-mark/

For-profit schools have an even worse track record. 44% of students who obtained student loan debt were facing major financial distress. 25% of them defaulted on their loans. This was only a few years after being in the repayment program. It often takes students a decade or longer to repay them in full.

Why is this Happening?

In order to maintain within federal levels of default, colleges have been using a nasty strategy. They have been aggressively telling students to use forbearances and deferments. This may pause their loans for the time being while they struggle, but it’s a sneaky way of avoiding the situation. As long as the schools get their money, they’re happy.

For many, high interest rates make it nearly impossible to pay back the loan. They owe too much money, and if something happens and they can’t afford the loan, that’s it. It grows exponentially larger. Yet, the government keeps avoiding the problem as they flow more money into schools.

The truth is, to tackle this problem, the federal government, individual states, and schools need to make changes. They should all work together to make college more affordable. By forcing students to rely on loans, they’ve turned what used to be a great investment into an economic nightmare.

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Student Loan Debt Crosses the $1.5 Trillion Mark

Written by adminAugust 28, 2018
Student Loan Consolidation

Student loan debt has long passed being an epidemic and has entered crisis territory. It was just announced that the amount due hit a record $1.5 trillion and continues to climb rapidly. A lot of it has to do with the increasingly higher cost of college, but students aren’t paying their bill.

The problem is, they can’t pay their debt and their rent at the same time. This is why a lot of young adults are living at home and working two jobs just to keep up with their bills. Depending on how much they owe, students pay as much monthly as it costs to rent a cheap apartment.

Repayment often begins as soon as the student graduates. This forces them to use payment adjustment schemes that might offer short-term relief by cutting monthly payments, but it doesn’t do the trick. You still owe the entire amount that you borrowed. This “strategy” only ensures that young adults carry student loan debt longer than they would normally.

Student Loan Debt Rising

Overall, the US student debt has grown by $500 billion since the 2010 to 2011 school year. It’s interesting to see that while the amount of debt piles up, actual lending volumes have been falling. The number of people obtaining student loans has been declining as well. This is causing a major problem.

Because students answer this repayment program that make monthly payments smaller, they don’t realize they’re not lowering the interest rate at the same time. That means they’re stretching out the life of their loan while even more interest keeps piling on. On top of that, if they miss a payment, additional fees are added.

Also: http://financialhelpers.com/5-student-loan-debt-statistics/

John Anglim of S&P agrees that the interest rates are what’s allowing the banks to make a killing off interest.

“By reducing the payments, they allow borrowers to stay current, but the balance keeps growing. That’s what we’re seeing now,” he said. “If the government is serious and concerned about growing student debt, then we need to come up with a broader plan rather than one that just helps a select few.”

Student Loan Debt Hurting the Economy

It’s easy to understand how debt can be a drag on the average U.S. household. Paying towards student loan debt takes money out of your pockets that can go towards your life. Because so many young people have debt, it has become a major drain on the economy. If more people are paying towards something, it’s not being reinvested back into the economy.

This is causing everyone from the poorest American to the highest-paid politician worried about the future of this country. How much more expensive will student loans get? Vincent Deluard, a strategist for INTL FCStone, sees it as a growing danger towards future economic growth.

“A significant portion of the millennial generation has gone bankrupt before it could start building wealth, which is a — still-unaddressed — threat to the long-term health of the US economy,” he said in a report.

In January, a report came out from the think-tank Brookings, revealing that the number of graduates who default on their student loans could reach as high as 40% by 2023. Overall, the government has to do a better job at creating student loan forgiveness programs.

Some currently exist, but no one knows how long they’ll be around. President Trump tried to cut these programs in his first budget, but had to give in to pass this year’s budget. Eventually, this problem will have to be passed to the government to figure out, as the amount of debt continues to climb.

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5 Student Loan Debt Statistics You Should Know

Written by adminAugust 27, 2018
Student Loan Consolidation

As of last year, Americans owed 2.5 times more student debt than they did a decade ago. That totals out to more than $1.3 trillion. It’s basic economic numbers. More young adults are going to college at a time when it’s more expensive than ever. Hence, the student loan debt piles up.

The problem is, it has become a major epidemic. Most young people go to college with the expectation of finding a career as soon as they graduate. But, having to tackle $50,000 worth of debt right out of the gate isn’t helpful.

The Pew Research Center has a lot of staggering facts about this American crisis. Perhaps sharing these will allow you to understand what’s going on and how to prevent it from taking hold in your life. Let’s look at 5 scary facts about student loan debt.

1) 40% of Young Adults Have Student Loan Debt

Between the ages of 18 and 29, about 4 in 10 former students are struggling with this problem. The rest either had a means of paying back their loans or didn’t go to college at all. It’s a fact that student loan debt is much less common with older generations. Only 4% of people over 45 reported having student loans.

It’s true that older adults have had more time to pay off their debts, so they have less. But, there’s more to the story than that. Millennials are really the first generation to take out a loan to pay for school at this degree. Nearly half as many students got a loan in the early 1990s. Most likely college was more affordable or they had a better plan for paying it off.

2) The Amount Owed Varies by Degree

As of 2016, the average amount of student loan debt held by each student was around $17,000. It’s quite obvious that different degrees require higher amounts of loans to be taken out. A quarter of all students owe $7,000 while another quarter have $43,000 in debt. Each level of degree obtained came with higher amounts of debt.

For example, students who had an Associate degree had $10,000 or less. Bachelor’s degree holders had around $25,000 in debt on average. Postgrad degree holders had over $45,000 in debt. 7% of all borrowers owe over $100,000. They’re most likely the future doctors and lawyers of the world.

3) College Graduates are More Likely to Struggle Financially

Here’s an interesting statistic. If you have a college degree and student loan debt, you’re more likely to struggle with your finances and hold down more than one job. That’s because paying back those loans is not an easy task. Loan payments can be nearly as expensive as renting a cheap apartment.

Also: http://financialhelpers.com/trump-administration-signs-massive-student-loan-forgiveness-bill/

Due to the last decade’s Great Recession, more students were leaving college without a plan and without a job. They were more likely to live at home while holding down two or more jobs. In contrast, young adults who didn’t go to college have a better handle on their finances and don’t need to work double jobs to support themselves.

4) College Graduates More Likely to Live in a Higher Income Family

For most people, getting a college degree is a major investment that should pay off later in life. The statistics bear that out. While it is true graduates struggle more right after college, once the degrees are paid off, they’re doing pretty good. Getting a bachelor’s degree or higher, while coming with higher amounts of debt, lead to higher income families.

5) Students with Loan Debt Less Upbeat

According to the Pew Research Center, students who used loans as a way to pay for college were less likely to consider their degree worth it. It’s easy to understand those who found higher value in their degree had their education paid for by someone else. If you have to spend the next decade paying off your education, you’re more likely to think it wasn’t worth it.

Only half of students with outstanding debt say it was worth the investment, while 69% who don’t have debt say it was definitely worth it.

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4 Things Every Parent Should Know about Student Loans

Written by adminAugust 24, 2018
Student Loan Consolidation

As August comes to close, most college students have already made it to the dorms in preparation for the new year. Perhaps you’ve already secured all the funding you needed. This most likely includes some type of student loan. Paying for college is a giant headache. What you don’t know about student loans can set your child back after they graduate.

There are numerous stories of people who lost out on work because they couldn’t pay their loans. Licenses were stripped and years of hard work went down the drain. It may be an easy decision to help your kid get into the college of his or her dreams, but there are numerous challenges they will face.

Therefore, let’s take a look at several aspects of student loans you may not know.

1) Co-Signers Are on the Hook for Student Loans

It’s an easy decision for parents to do whatever it takes to help their child get into a good school. Many even feel the need to co-sign the loan. Parents should know the massive risk that comes with that. If your child cannot find work after graduating, you are making the payments. You can be sure that the lenders will be coming after you for repayment.

Another tragic story involved the Mason family. Steve and Darnelle Mason’s daughter Lisa dreamed of going to nursing school, so they cosigned a $100,000 private loan. At the age of 27, she died of sudden onset liver failure. Tragically, the lenders went after Steve and Darnelle to pay back what became $200,000 worth of student loan debt, late fees, and interest.

2) Look for Free Money First

Depending on how much money you make, there are tons of grants and scholarships out there. Some aren’t so easy to find, but they do exist. You can find a grant for just about anything these days. Any amount of money you can get to help offset the cost of college is worth the time spend researching and applying.

Also: http://financialhelpers.com/student-loan-debt-is-hurting-the-economy/

You can find grants and scholarships based on religious affiliation, ethnicity, student achievement, financial status, and so much more. The best way to find them is to get those fingers going and search the internet.

3) Set Out a Plan Ahead of Time for Paying Back Student Loans

Here’s one most people don’t think to do. You have no idea what the economic climate will be 4-7 years down the road. The best way to conquer the burden of debt is by being smart and prepared. There are several government programs and institutions that offer student loan forgiveness. Financial Helpers is one such company who is willing to work with you.

The best way to prepare for that day is to work on improving your child’s credit as they go through school. Get a credit card, teach them about fiscal responsibility, and save money. As their credit score improves, they can later refinance their loans.

4) Start Saving ASAP

The best advice is to start saving money for college as soon as they’re born. For those of you whose children are already entering college, it’s a bit too late for this step. But for everyone else looking to be prepared, there are state prepared college accounts you can pay into and use the power of compound interest.

This step not only takes away the student loan equation, but also the additional money paid into interest. Instead, you can use interest for your benefit and not the bank’s. There are other tax benefits as well. Do your research and be prepared!

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Student Loan Forgiveness Easier for Vets Thanks to Trump Administration

Written by adminAugust 23, 2018
Student Loan Consolidation

There’s no doubt that President Trump wants the support of veterans. He never fails to bring them up during rallies. It was so important to him, he told anyone who listened that vets needed better care. That included student loan forgiveness.

In doing so, Trump vowed to fix the VA to give them the best medical care and treatment available.

When it comes to helping students suffering under the massive weight of their loans, he felt less inclined to help. In fact, President Trump and Betsy DeVos attempted to roll back programs set in motion by the Obama administration.

Luckily, under the new budget, the current administration budged and kept the student loan forgiveness programs intact. For now. Who knows where these programs will go in the next fiscal year. As student loan debt continues to climb to record numbers, help is needed more than ever.

Student Loan Forgiveness is Essential for Vets

This new effort by the Trump administration hopes to make it easier for veterans to receive student loan forgiveness. For most students, this isn’t a simple process and it comes with hoops and qualifications. The difference is, many vets are unable to work normal jobs to pay back the loans.

In 2016, nearly 4 million vets had disabilities connected to their time in service. 1.3 million of them had quite serious disabilities, most of which leaves them unable to work at all. Even without a physical disability, there are other mental and psychological issues from their time in war. PTSD and depression are common among the veteran population.

According to Education Secretary Betsy DeVos: “Our nation’s veterans have sacrificed much for our country. It is important that, in return, we do all we can to give them the support and care they deserve.”

Check out: http://financialhelpers.com/trump-and-devos-still-want-to-make-massive-cuts-to-student-aid-programs/

Student loan debt is a problem for most Americans, but it’s even dire for veterans who are unable to work. Making these programs easier for them will help cut down their financial burdens after leaving the military.

Student Loan Forgiveness Simplified

It was actually the Obama administration who created the Total and Permanent Disability Discharge program originally, but it wasn’t really known to veterans. The lack of publicity made it difficult for vets to obtain student loan forgiveness.

The goal of the Trump administration is to expand the original program and make it easier for vets to get their hands on.

“Simplifying the loan forgiveness process and proactively identifying veterans with federal student loans who may be eligible for a discharge is a small but critical way we can show our gratitude for veterans’ service,” said DeVos.

The idea is to have the Department of Veterans Affairs to directly reach out to each veteran independently to alert them about the program and offer assistance in completing the application for student debt forgiveness.

There are a few requirements to be accepted by the program, including having a disabling disability that prohibits your ability to repay.

Once approved, the Department of Education will tell your lenders that you are free and clear. The best part is, if you’ve already made payments towards your student loans, they will be refunded back to you.

This is great news for vets everywhere. Their service means a lot to this country, many of whom will suffer a lifetime of pain and disability. The more we can take care of those who serve us, the better we’ll be for it.

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Student Loan Interest Rates are Rising

Written by adminAugust 22, 2018
Student Loan Consolidation

If you’re someone who is paying off a student loan, added interest is a terrible thing. They make the things we buy with credit more expensive. Of course, the banks love it. And when the rates increase, it’s hardly noticeable. At first.

You may not realize when the rates increase. It happens slowly, but before you realize it, the rates have doubled. The same thing happened the James Park, a 42-year-old scientist.

Paying on his $38,000 student loan, Park rarely noticed anything different. His loan increased monthly in fairly small increments. After three years had passed, he saw that the overall interest doubled. He started out paying 2.4% and recently found it was 4.3%.

Tackling the Student Loan Problem

All over the country, people are suffering under the heavy burden of their student loans. While the current economic climate is improving, it allows for interest rates to soar. When times are bad, the government can lower the rates to help people get by. They even offer student loan forgiveness to those who qualify.

The last thing anyone wants to do is pay more money over the life of their student loans. If you’re struggling, there are several options at your disposal. The first is having a firm understanding of what your interest rate does and why you have it. Only then can you go through the process of fixing it.

Understanding Your Interest Rate

You might think that the federal government is typically in charge of the student loan rate, but that’s not always the case. If you’ve received a private student loan, it most likely comes from a rate that is tied to something called Libor. Libor refers to the London Interbank Offered Rate. As the rates go up or down, that’s typically what most students receive that year.

See also: http://financialhelpers.com/student-loan-debt-is-hurting-the-economy/

For this reason, students receiving a loan this year will have a higher rate than if they got one last year, and so on. There are other variables as well, such as your credit score, history, and whether you have a co-signer.

The problem is, most college students get a student loan with zero credit to their name. Rates are often high and take as long as a decade to pay back. This only adds fuel to the epidemic already raging when interest rates climb higher.

How to Fix the Student Loan Problem

One of the first things you should do if dealing with student debt is calling Financial Helpers. Our team of experts handles this type of situation every single day. The government offers several student loan forgiveness programs for people who qualify. Most borrowers have little knowledge of their options, so calling the number below is important to find out.

Call Now 844-332-2079

Because your rate is often tied into your credit score, that gives you some options as well. When Park first got his student loan, he had little income and no credit. Once he graduated and found employment, made on-time payments, his score improved. Park was able to refinance his loan and get a lower, fixed rate.

A fixed rate means you’ll pay that single rate, no matter how the interest changes. Refinancing your loan can help you get a much better rate. If your credit score improved, that means you’re more trustworthy to a creditor. That equals to lower overall payments.

Student loan forgiveness, refinancing, and getting a fixed rate all possible. You don’t need to suffer any longer. Call Financial Helpers today to see your options.

Call Now 844-332-2079

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Student Loan Forgiveness is Tricky for Some Service Workers

Written by adminAugust 21, 2018
Student Loan Consolidation

Service workers are very important to our society. They teach our kids, keep our streets safe, and take care of us when we’re sick. Public service workers receive student loan forgiveness under qualifying circumstances. But, if you don’t know what you’re doing, it can hurt you in the long run.

But, one teacher in Arizona found this out the hard way.

The Public Service Loan Forgiveness program allows public service workers to obtain student loan forgiveness after 120 qualifying payments have been met.

Jennifer Gardner, a math teacher in Phoenix, worked for 10 years after obtaining her bachelor’s and master’s degree. She was making her loan payments and looking forward to life after student loan debt. Only two payments away from completion, she found out she didn’t qualify.

Student Loan Forgiveness Hoops

She taught at a non-profit public school that served lower-income families, which is part of the qualifications. There’s a lot of work that goes into making what they consider ‘qualified payments’. You have to send in W-2s to prove what you’re making.

It also requires you to send an employer certification form to the loan company. Despite complying and believing she met every requirement, Gardner was rejected from service.

“I started getting denial letters. So, it said ‘no your employer doesn’t qualify anymore,'” said Gardener. “What is it that doesn’t qualify? I’m a public servant. I’m a public teacher. I teach math. Like how do you get more public service than that?”

It’s All in the Details

Gardner received eight year’s worth of “You’re Qualified” letters from her loan servicer. Therefore, to get a denial just two payments before completion was extremely challenging for Gardner.

According to the loaner, her paychecks were issued from a company called The Leona Group. They are a for-profit organization hired to manage charter schools in various states. Because her main employer isn’t a non-profit school district, she’s seen as working for the group.

See Also: http://financialhelpers.com/another-state-to-sue-navient-over-student-loan-deception/

Her denial letter stated: “After further review and after consulting with the Department of Education, we determined that this approval was issued in error. As a result, we are reversing our approval and revoking credit for any payments.”

There are numerous states that allow the schools to hire companies, like The Leona Group. They serve their schools and hire teachers. There’s no telling how many teachers might ultimately be denied student loan forgiveness.

The school district stands firmly behind Gardner and says she could receive full credit. Your overall body of work, not who hired you. Despite this detail, the district still serves low-income families. Yet, to lose all student loan forgiveness privileges after 8 years of approval letters and on-time payment has been a hard pill to swallow.

The best advice is to keep up on all the documents to fulfill the qualifications. Don’t leave any stone unturned. If you have any questions or want to know more about student loan forgiveness, give Financial Helpers a call. We’d love to hear from you.

Call Now 844-332-2079

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