Student Loan Consolidation

U.S. student debt has climbed at a faster rate in 2018 than at any other time in our nation’s history. When compared to all other forms of debt, it ranks #2 behind mortgage debt. Yes, student debt is higher than credit card and automotive debt. That’s very difficult to imagine! A lot of it has to do with the number of new students going to college.

Our population is growing and the vast majority of young people plan to go to college. It’s also the next generation who will be saddled with more student debt than their parents and grandparents…maybe even combined! But, as more young people go to school, the more money they’ll borrow.

Of course, that’s not necessarily bad. Going to college is a right of passage. If you want the higher paying jobs, then a degree is necessary. By 2020, it’s expected that as much as 65% of all job offers will most likely require a minimum of a bachelor’s degree. This is because technology is advancing and the job market is changing as a whole.

But doing something with your degree depends on the economy. Millennials today not only have higher amounts of student debt, they also can’t find work. They’ve needed to fight to overcome the Great Recession that hit the past decade. Many millions of students went to college when work was scarce and graduated to find they had no opportunities.

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Are College Degrees Still an Investment in Your Future?

When many people start college, they think of it as an investment in their future. Except, they can’t afford the extremely high price of going to a good school. Community college is reasonably priced when compared to a university. The problem is, the cost of a college education has quadrupled in the last 30 years.

College now requires the person to acquire as much as $25,000 worth of debt just for a bachelor’s degree. Private colleges are even more expensive, sometimes as high as $50,000. The only way to make it for millions of students is to pile on student debt in record amounts. They sign the dotted line because it seems worthwhile.

http://financialhelpers.com/millennials-are-willing-to-give-up-perks-for-student-loan-help/

But, by the time they graduate and it’s time to pay up, many begin to regret their decisions. They are frustrated that they didn’t plan better or fully understand how difficult it would be. Millennials have a reputation for still living at home after graduation, and this is why. They simply can’t afford their student debt payments.

Student Debt and the Economy

The average monthly payment students are required to pay back on their loan is $351. This payment sticks with them, sometimes for decades! Many pay on their debt for years, but interest has only piled on to the total. This only makes their situation worse. It’s so bad, nearly 10% of all student debt holders default after just two years.

The worst part is, there is no help for them. They cannot declare bankruptcy and wipe it away. Not paying on it and default doesn’t stop the total from increasing. It also won’t fall off your credit after a certain period of time. If you have student debt, it’s yours for life until it’s paid off. That’s a major problem.

The problem is growing exponentially. The Brookings Institute says that by 2023, 40% of all student debt holders will default. CNBC calls this debt a bubble, but MarketWatch and Fox News don’t hold back when saying it’s a crisis. It’s like the Great Recession all over again. Lenders will have to be rescued by the taxpayers.

How does this look for the long term? Well, young adults cannot afford to buy cars. They’re putting off major life decisions, like having children and getting married. They can’t get a mortgage. And they’re broke. Jobs have been scarce for the better part of a decade. Millennials are so broke, in fact, that they’re killing numerous industries.

The experts, like Fed Chief Jerome Powell, are expecting the worst. “It’s not something you can pick up in the day right now, but as student loans continue to grow they can absolutely hold back growth,” he warned.

Time will only tell what happens from here.

As student loan debt continues to rise dramatically, it’s putting many families underwater. Currently, 44 million Americans owe over $1.53 trillion worth of student loan debt. That’s the making of a new economic crisis that’s forcing families to make hard decisions. A lot of these hard decisions involve delaying things like buying a home, getting married, and having kids.

When a young person goes to college, they don’t really understand the burden student loan debt will have later. They expect to have a well-paying job once they graduate. Reality bites hard. After they walk across the stage, they’re saddled with tens of thousands of dollars’ worth of debt.

It’s almost like deciding to buy a luxury car, but you don’t have any way to pay for it. Immediately you’ll have to start making payments, but you don’t have the money. Yet, the student loan won’t go away. They won’t repossess it if you can’t pay. It will stick with you until you pay it. And that makes a lot of people desperate to find help.

To learn more about how you can get help paying your student loans, call Financial Helpers today! We’d love to hear from you. You can reach us at:

Call Now 844-332-2079

Americans Desperate for Student Loan Help

According to a survey from Self Lender, many millennials are willing to give up perks for help paying student loans. In fact, they’d be willing to do almost anything for help from their employer. Here are several of the key statistics found in the survey of 1,000 millennials:

• 23% would give up working from home.
• 20% would give up paid time off
• 15% would give up 401(k) matching
• 6% would give up health benefits

To have millennials willing to give up health benefits for help paying their student loan should be evidence enough. They’re desperate for help. Some sort of student loan repayment plan appears to be a great benefit for employers to consider. It would make their company an attractive destination for intelligent young workers.

http://financialhelpers.com/new-laws-in-several-states-help-to-regulate-student-loan-servicers/

Of course, higher salaries are often preferred, but student loan debt assistance would help lower stress. Employees struggling under this burden don’t often perform well. They will struggle with not making enough money. That predicament will force them to make even harder decisions.

Employees who don’t feel financially secure often don’t work as hard. They start to feel as if they’re breaking their back for minimum gain. Many of them are still living at home because they can’t afford to pay both their student loan and rent. This is what makes debt repayment a great idea for any employer.

As the new year kicks into gear, new developments in the student loan arena have become law. Several states are fighting back against student loan servicers or purposely making life hard. We’ve covered stories over the past few days of servicers who were dishonest with borrowers. This led to many people lucking out of benefits they desperately needed.

The government seems to be slowly but surely waking up to the realization that people are suffering. For-profit schools and loan servicers are making a killing. They’re doing it by lying and cheating the system. While the federal government is still behind, many states have taken a step forward in implementing a new plan.

California, Washington, and Illinois all implemented and signed new laws. Other states, like New Mexico and Virginia, are currently introducing new legislation. All these states are jumping on the bandwagon to regulate student loan servicers to prevent their corruption. Must take a look at what each state is doing to help student loan borrowers.

To learn more about student loan forgiveness and your options, constant Financial Helpers today! We’d love to hear from you! You can reach us at:

Call Now 844-332-2079

California

A lot of California’s work involves oversight. Their Department of Business Oversight published a student loan servicing report. This report reveals how licensees are to report to the Commissioner by March 15. With this report, every student loan servicer will share their profile. Each year a new report arrives on December 31.

Illinois

Illinois is requiring a student loan servicer to provide access to a website that handles communications. Someone has a question about new or existing loan applications, they can answer honestly. The regulations also state that each servicer must provide detailed information through a secure system. Therefore, providing needed oversight.

By providing oversight and detailing personal records, forces servicers to be honest. Allows borrowers to log and then see their application, complete loan history, and so much more. It also provides borrowers with instructions on how to handle things like overpayments. This is just the beginning of keeping student loan servicers honest.

Washington

Washington state introduced a new law that went into effect at the start of the year. This new law backs up the Consumer Loan Act which was passed last year. It requires student loan servicers to report any and all changes. It also provides a point of contact regarding student loan forgiveness options. Still, there’s a lot more work to be done!

http://financialhelpers.com/how-much-has-student-debt-grown-in-the-last-decade/

In reality, these new laws are holding student loan servicer’s feet to the fire. It’s giving borrowers the information they need to make better decisions regarding their student loans. Servicers must follow state and federal law.

Midterm Elections Impact Student Loan Laws

2018 midterm elections saw a shift to many governorships and state legislators turning to Democratic control. With this being the case, it’s expected that more laws and protections regarding student loans will be put into effect over the next few years. More oversight and honest reporting is required to help keep people safe. Still, not much is likely to happen on the federal level. We’ll keep you up to date on any new revelations!

It would appear as if nothing grew faster in the United States over the past decade more than student debt. In fact, over the last decade, the cost of going to a university has exploded three times faster than any other expense. Currently, the amount of student debt on the books is $1.53 trillion and climbing. It doesn’t appear to be going anywhere soon.

The goal to go to college and get a degree is a noble one. We do it hoping it will lead to a wonderful, life-long career. We think that career is worth it, so we take out a loan to pay for housing, books, and tuition. We wholeheartedly believe we’ll be able to pay back that student debt, so we sign on the dotted line.

Once the student graduates, an entirely different scenario plays out. Repaying student debt becomes a massive hurdle for most. The job situation they expected to pan out doesn’t go anywhere. The money they thought they’d have left them feeling empty. They graduate and immediately find themselves slapped with a massive bill and huge monthly payments.

In a lot of cases, it can take 10-20 years for someone to fully pay off their student debt. If the economy is bad, forget it! If jobs are lacking, don’t even bother. And if someone goes into default for not being able to pay, their luck has run out. Interest continues to pile up and many can’t seem to get ahead of it.

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Student Debt Statistics

The amount of debt Americans hold is staggering. There are other statistics you should know about this growing crisis.

• 44.7 million Americans hold student debt. That’s about 1-in-4 people.
• The average amount of debt each student has is: $37,172
• The average monthly payment: $393
• In the last decade, student debt has surpassed credit card and auto loan debt
• Since 1971, the cost of going to a public university has grown from $8,730 to $21,370
• Since 2971, the cost of going to a private university has grown from $18,140 to $48,510

The state with the fastest growing amount of student debt is South Carolina. Over the last decade, their debt quadrupled, increasing from $5.6 billion to $23.1 billion. Still, the amount of student debt held grew in all 50 states and DC. The only type of debt that still surpasses it is mortgage debt. The problem is, you can’t discharge it with bankruptcy.

http://financialhelpers.com/new-york-ag-wins-case-against-student-loan-servicer/

The problem is so bad that 41% of student debt borrowers can’t even afford $400 for an emergency! They’re cash-strapped, not saving for retirement, and unable to make life decisions. It’s forcing them to delay marriage, put off having kids, from buying a home, and more. These numbers show no signs of getting better.

The big question will be how all of this debt will affect the economy long-term. If people can’t afford the basics and aren’t saving money, it doesn’t bode well. Hopefully, a solution is in the works sometime soon. If not, millions of American families will be upside down financially.

We just reported on Friday about a major lawsuit won against a student loan servicer. Now, we have another case to report on. The New York Attorney General Letitia James reports a major victory against ACS Education Services. The New York AG sued ACS for being dishonest with customers about student loan repayment programs.

More specifically, they were preventing students from seeking avenues that make it easier for them to pay back their debt. ACS Education Services has changed their name to Conduent Education Services, LLC. Before then, they were known as Xerox Education Services. It’s incredibly telling when the company has to change its name several times while fighting off fraudulent charges.

When people are bogged down by student loan payments, they seek out ways to help them out. Maybe it’s signing up for the PAYE or REPAYE repayment programs that cut down the monthly payments. It can also be the Public Service Loan Forgiveness Program. The PSLF offers full student loan forgiveness to public service workers with 10 years of qualifying payments.

Rather than helping struggling people to pay off their student loan debt, they chose deception and greed. They stand accused of purposely misleading students about their options. They were steered away from those programs and lied to about whether they would qualify for PSLF. All for greedy hands who wanted to collect more money.

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Deceptive Student Loan Practices by Conduent

The New York Attorney General investigated the claims of fraudulent activity by Conduent. They found all sorts of dirty laundry that includes:

• Convincing borrowers to go into forbearance when they needed an income-driven plan.
• Lied to students, including servicemembers, about qualifying for PLSF
• Delaying student loan borrower’s attempts at consolidating their loans
• Failed to process IBR applications
• Gave borrowers wrong information about payment to maximize late fees
• Misapplied payments made
• Misreported information to credit reporting agencies
• Improperly calculated a new interest rate for servicemembers who qualify for the Servicemember Civil Relief Act
• Charged late fees improperly

There’s more to it, but this is the gist. As a result, Conduent is to pay a civil penalty of $1 million to New York state. Another $8 million will be paid in restitution to those who are hurting by this company’s lies. They also have to agree not to service another student loan for at least 5 years.

A Response to the Lawsuit

Director of External Communications at Conduent, Neil Franz, has a response to the lawsuit and agreement.

“We have entered into a settlement agreement with the New York State Attorney General’s Office and the New York Department of Financial Services stemming from investigations initiated in 2014 and 2015, prior to Conduent’s separation from Xerox Corporation,” he said.

http://financialhelpers.com/lawsuit-erases-490-million-worth-of-student-debt/

“The investigation centered on loan servicing activities going back into the 1990s. As previously communicated in our public disclosures, the company decided to exit the student loan servicing business and completed its exit from this business in October 2018. The company, which has neither admitted nor denied liability, is pleased to put these legacy issues behind it.”

At the end of the day, Conduent is yet another fraudulent student loan servicer caught in the act. There’s a wind of change happening. As student loan debt continues to grow, there’s no relief in sight. But, as long as more deceptive companies are caught, we’re getting closer to resolving the issue.

Student debt warriors get another win!

In the fight against deceptive practices, another deceptive education company gets slapped down. If you went through the Career Education Corporation for your loans, you’re in luck! After a long battle, they’ve agreed to forgive more than $490 million worth of student debt. This impacts over 180,000 students in 47 states!

Arizona Attorney General Mark Brnovich took part in the fight. He said:

“Our goal was to provide debt relief and restitution for those that were allegedly conned or ripped off by this for-profit university,” he said. “As a result of this settlement, people that have outstanding student debt that was obtained through these specific universities will have that debt removed or relieved.”

Investigators for the 47 states involved in the lawsuit believed the CEC intentionally lied to students. They misled them about the cost of college, whether credits would transfer, and lied about job placement numbers. A lot of these for-profit colleges advertised on inflated or completely made-up placement numbers.

To learn more about student debt and how to obtain forgiveness, give Financial Helpers a call! We’d love to hear from you. You can reach us at:

Call Now 844-332-2079

Student Debt Deception

The CEC has operated ten different campuses, both defunct and still active. Le Cordon Bleu, Sanford-Brown, and Collins are among them. Over the years, the CEC has closed down most of their physical campuses and now mostly stick to online courses. They go by the name American InterContinental University and Colorado Technical University.

Their defunct schools include: Brooks Institute, Katharine Gibbs School, Philadelphia College, Missouri College, Harrington Schools of Design, and Briarcliffe College.

“We do know that there are people here in Arizona that obtained student loans through these universities, and as a result of the settlement they’ll be provided debt relief,” Brnovich said.

http://financialhelpers.com/5-biggest-mistakes-people-make-repaying-student-loan-debt/

While many students no longer have their debt, they are not in the lawsuit. That means no refund is currently in the works. But since this is a sign of guilt, those individuals are more likely to pursue a lawsuit of their own. The CEC will notify students if they’re eligible to have their student debt forgiven.

Wipe Your Debt Away

The CEC didn’t just offer full student loan forgiveness, but also to reform their recruiting policies. They’ve also offered to pay $5 million to go towards further investigation of other frauds. This is a landmark case that is sure to catch the attention of student debt holders across the country. If you want to learn more, give them a call. Give it a shot! But, if you have student debt, hold onto hope.

“If someone feels like they’re eligible for debt forgiveness, they should contact CEC directly and let them know they are part of this class of people and that they should be getting some debt relief as well,” Brnovich said.

Student loan debt isn’t something that’s going to go away on its own. Many people are simply waiting for the government to get their act together. They’ll look for solutions to the crisis that’s currently unfolding. The amount of student loan debt has rocketed past the $1.53 trillion mark. It’s only going to get higher.

One of the main reasons why it’s rising so dramatically are mistakes many people are making. They’re not doing their homework and later regret their decisions. Or they think they have a simple solution to the problem, only to find themselves stuck. It has happened to thousands of borrowers who now can’t find their way out.

There are even stories of people who spent nearly a decade making payments on their debt. They thought they would qualify for student loan forgiveness. When it came time to get their debt axed, they found out they didn’t have the right type of loan. And when the payments seem too much, they quit paying altogether.

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Here’s a list of 5 mistakes people are making when attempting to pay back their student loan debt:

1) They Completely Avoid their Student Loan Debt

A lot of people who get in well over their heads decide they’ll just ignore their debt. It might work with other types. After a certain amount of years, debt might fall off your credit report and you get a fresh start. Not with student loan debt. This is a different beast altogether, especially if you have federal loans. They will not just disappear from view.

The biggest mistake you can ever make with student loan debt is to ignore it. As previously stated, it will not just fall off your credit. It will stick with you forever until you pay it. And if you don’t, the interest will still pile up during that time. You could be looking at adding thousands upon thousands of dollars to your total by ignoring it.

2) Defaulting on their Student Loans

This mistake should go under the first one, but it’s yet another huge mistake people make. Just missing a few payments is enough to send someone into default. Again, your student loan debt will no go away. And if you default, good luck fighting your way back after that. Late fees are added on and if you’re in default, you’ll never be considered for other loans.

It’s important to know when all your due dates are and make your monthly payments. They are not lenient if you miss a month. If you can’t afford your student loan debt, then you can find a better repayment plan that works for you. But avoiding the problem will only make life much more difficult for yourself.

3) Thinking Bankruptcy Will Get You Out

Another option borrowers think they have in their back pocket is bankruptcy. Sometimes having too much debt and less income causes them to declare bankruptcy. They’ve gotten too far behind and can’t seem to catch up. While it’s a devastating position to be in, it’s not one that will help you with student loans.

In most cases, student loan debt won’t be canceled by bankruptcy. Maybe other debts, like credit card debt, but again, your debt will always stick with you. You must pay it back at all costs. If you’re struggling, talk with your lender about options that might help you. Just never ignore your loans and hope they go away.

4) Applying for Forbearance Without Paying Interest

Life happens. When you’re paying back a loan for the next 10-20 years, there will be times when money is tight. You might apply for a forbearance, allowing you to put off making payments for up to a year. While people take a break, it’s important to understand that the interest is still growing.

http://financialhelpers.com/4-major-changes-that-could-happen-to-student-loans-in-2019/

There’s absolutely no way to stop the clock on interest payments. Even while on forbearance, your student loan debt continues to grow. And once you’re back to making payments, the interest accumulated will be added on to your principal balance. So, even if you need to take time away, continue paying the interest to stay ahead.

5) Not Knowing You Can Write Off Some Interest

A lot of people don’t know that they can write off a decent chunk of their interest. It’s capped at around $2,500 per year, but it’s a little something back. Your lender will send you a 1099 in January. Use the information to take the tax deduction! A little help will go a long way. And when you get your tax return, you can use it to pay off a huge chunk of debt.

As we enter 2019, many millions of Americans are worried about the student loan crisis. In total, 44 million Americans owe over $1.53 trillion worth of student loans. Is that number continues to grow, college education only gets more expensive. And whether the government will help people get through these trying times depends on the administration.

Where the Obama administration actually created a student loan forgiveness program, the Trump administration has different plans. In fact, President Trump wanted to do away with forgiveness altogether. He and Education Secretary Betsy DeVos believe it’s not fair for taxpayers to be on the hook for student loans.

Currently, the government is shut down over budget concerns. Last year, Trump wanted to do away with the forgiveness programs. He came extremely close to doing it, but eventually compromised with the Democrats kept it in the budget. Now with the budget on the line, it’s unknown what will happen next.

Here’s a list of four major changes that might happen to student loans in 2019:

1) Student Loan Forgiveness Gets Wiped Out

The current law states that public service workers to receive full forgiveness for their student loans after 10 years of qualifying payments. As stated previously, Trump wanted to do away with this program last year. In fact, it was on the chopping block until a budget compromise happened. This year? It’s unknown what will happen forgiveness program.

But if President Trump gets his way, it might be a goner. He and Betsy DeVos want to implement a different program. Even if it doesn’t happen this year, the entire forgiveness program is threatened. The best thing you can do is constant Financial Helpers today to see if you qualify. You can reach us at:

Call Now 844-332-2079

2) Repayment Plans for Student Loans

There are several student loan repayment programs out there today. This gives students multiple options and helping them pay back their student loans. If you’re on an income-driven repayment program, they can help you save some money. But the current repayment program on the books today is also in the crosshairs of President Trump.

As a candidate in 2016, Donald Trump said he wanted to combine the income-driven repayment plans. These plans are the PAYE and REPAYE. By combining them, in Trump’s mind, it makes the process much easier for students. The difference is whether you have private or federal student loans. You must know the difference between the two.

3) Interest Rates are Rising

In 2018, the Fed frustrated a lot of people by interesting the interest rate 4 different times. As it currently appears, the Fed is still increasing rates. It’s quite possible that they’ll do it again in 2019. Are you ready for rising interest rates? They’re a burden to most people, as it only makes it harder to pay off student loans.

http://financialhelpers.com/will-federal-student-loans-be-impacted-by-the-government-shutdown/

4) Student Loan Rates Will Change

Every July 1st, the student loan interest rates reset. The new interest rate is set and runs throughout the year until June 30. If you have a variable interest rate, that rate can change monthly. Therefore, you need to pay attention to this rate. It can impact what you’re going to pay dramatically.

Government shutdowns can be a scary thing for a large portion of the population. Many people rely on government assistance and benefits for survival. With the shutdown happening on December 22, 2018, it left many wondering what comes next. This is especially true for people with student loans.

No one knows when the government shutdown will end. Congress and President Trump seem to be at odds with each other about funding for the border wall. Is it a good idea? A waste of money? Most have the opinion on the subject. But what does it mean for the average citizen? The reality is: not much.

A government shutdown essentially means non-essential government employees are sent home until a deal is made. All federal agencies have workers and operations that aren’t essential. Most essential functions will continue on as normal. Does that have any impact on student loans?

To learn more about student loans and how you can get help paying them back, give Financial Helpers a call! We’d love to hear from you! You can reach us at:

Call Now 844-332-2079

Federal Student Loans and the Shutdown

The federal government owns over $1.53 trillion dollars’ worth of student loans. Of course, many of the millions of Americans with this type of debt may wonder what happens next. Will there be any disruption? Is obtaining loan forgiveness now out of the question? Are you expected to continue paying your student loans?

While there might be some minor issues, student loans shouldn’t be much affected by the shutdown. Again, the federal government does own the debt, but they’ve outsourced most of those jobs. Private contractors like Navient and FedLoan Servicing handle the day-to-day operations.

While these private contractors do handle the student loans for the government, they are no federal workers. That means the shutdown will not impact things like billing or processing. You’ll still receive notices and applications will be processed. Most of the operations happen within these agencies and not at the federal level.

Will the Department of Education Shut Down?

While most of the process involving student loans are taken care of by a third party, the Department of Education will still be in charge. For example, to receive a discharge of student loans due to a disability must go through the department for approval. This includes student loan forgiveness due to school closures or fraudulent cases.

The private contractors will look at the application, but the final discharge must be made by department officials. Settlements, defaulted loans, FAFSA applications, and other processes may need department approval as well. Still, the shutdown is not expected to affect any of this. It’s a partial shutdown and essential entities will still be required to show up for work.

The operations within the Department of Education will continue as normal. More specifically, that department was already funded through different legislation. They will be unphased by the shutdown.

What about the IRS?

While most of the process involving student loans will remain untouched, there is one area that will likely see a delay. The U.S. Department of Treasury will be directly impacted by the shutdown. More specifically, a large number of people working for the IRS could be furloughed until the shutdown is over. That can mean delays well into tax season.

http://financialhelpers.com/vets-are-still-defaulting-on-student-loans-despite-tpd-program/

These delays can include tax return processing and refunds. If you’re applying for income-driven repayment plans, you can see a major delay. Also, if you need to contact the IRS for any reason, there may be long phone wait times. Tax season is already stressful enough without the shutdown hampering operations.

For the most part, the shutdown will not affect your student loans. Everything should continue as normal. Keep making your monthly payments! May 2019 be the year we finally see a solution to this growing crisis.

President Trump signed a new student loan forgiveness law earlier in the year. This new law allowed for almost 42,000 disabled veterans to get their student loans completely wiped clean. This is a much-needed reprieve for disabled veterans who cannot work nor afford to pay back their debt. The problem is, there’s just not enough information out there just yet.

So far, only 18% of the 42,000 eligible veterans have made a claim to have their student loans forgiven. That’s not even the worst part. Nearly half of them, around 25,000 disabled vets, have defaulted on their student due to nonpayment. That makes it more likely that these service workers simply do not know about the program.

The program is called Total and Permanent Disability Discharge, or TPD for short. It allows for veterans who have been disabled permanently due to service-related injuries to get their student loans forgiven. If they’ve already been paying on those student loans previously, they can have that money refunded back to them.

Veterans can also have student loans they take out for their children forgiven as well. The only qualification is that the individual has to be classified 100% disabled. The disability must be the result of service-related work. This program can be a lifesaver for these vets. It’s shameful that the Department of Education hasn’t done a better job of promoting it.

To learn more about student loans and how to get full student loan forgiveness, call Financial Helpers! We’d love to help you in any way we can. You can reach us at:

Call Now 844-332-2079

The VA and Student Loans

Despite the total lack of education regarding this program, veterans know it’s available. Both the Department of Education and the Department of Veterans Affairs have worked together to make it work. Their data sharing initiative has allowed the crosschecking of the VA and education department databases.

If there’s a match, showing a disabled veteran with student loans, they are mailed an application for TPD. Still, of the 42,000 veterans contacted, only 7,700 were actually forgiven. Despite the vets receiving the application, there’s still a clear miscommunication about what TPD actually does.

http://financialhelpers.com/the-2018-holiday-season-retail-sale-numbers-are-in/

“These people can’t work. They’re 100 percent unable to work. Of course, they’re going to have problems paying back student loans,” said Mike Saunders, director of the military and consumer policy at the nonprofit Veterans Education Success. “It’s up to the administration to take proactive action to go out and help these people. To that end, we believe that automatic forgiveness should be something that the administration should be considering.”

Veterans service organizations, like the Vietnam Veterans of America, have petitioned Betsy DeVos to make the TPD more accessible for disabled veterans. They’ll think it’s fair for a vet to have to fill out an application. In a letter to the education secretary, the VVA wrote:

“It is not fair to ask severely disabled veterans to have to complete paperwork, especially given that some catastrophic disabilities will interfere with their ability to complete the paperwork.”

Unwanted Consequences

The administration feels that they’ve done enough to let veterans know about this new program. This is despite the veteran’s groups asking for a more streamlined and automatic process. It’s still unclear why so many veterans have not gone through the program yet.

“The Department recognizes the sacrifices veterans and their families have made for our country, which is why we’ve streamlined the TPD discharge process through the data matching process with the VA,” Liz Hill, a spokeswoman for the Education Department, said in an email.

“The last thing we want to do is cause unintended consequences — like impact future federal student aid or create a state or local tax liability — for men and women who have given so much.”

Currently, the Department of Education uses Nelnet to notify veterans that they qualify. Nelnet is a federal loan servicer. Once they approve the data, Nelnet sends the veteran an application and gives them 120 days to respond. From that moment, they no longer have to make payments on the student loans.

But, once the 120-day period is up, the government will continue collection loans once more. This is why the VVA and other groups are begging for an automatic process. The veteran shouldn’t have to fill out an application if they’re 100% disabled. The process should be completely automatic.

The Department of Education must help more than they do. Instead, they make the process more difficult. Education is the key. Help get the word out about these programs.