Regarding the Obama Student Loan Forgiveness Plan
We are often asked about the new program President Obama put out that forgives student loan debt. There are advertisements everywhere touting the ability to get your debt slate cleared. The secret to that program, is that IT DOES NOT EXIST. There is no magical program out there that eliminates the average person from student loan obligation. There are specialty issues that can eliminate your federal student loans, but they have been around for some time. Reasons that will warrant you federal student loan forgiveness:
- You work for a nonprofit and made 120 payments toward your loan
- You’re a teacher at a Title One school
- You become totally and permanently disabled
- If you attended a school that closed down
- If you did not finish school AND the school failed to refund the appropriate money to the US Department of Education
- Public Service: i.e., Military (in combat), Peace Corp, Nurse or Medical technician, Law Enforcement – (specifically Perkins Loans)
- Bankruptcy (rare)
- Fraud (Committed to get you to qualify.)
- Death (Don’t try this one at home.)
For the rest of the population, we have to address the debt the old fashion way- with payments. There are however, a multitude of ways to address how you pay off your loans. We have found that Sallie Mae, Navient, the Department of Education, and even the debt collectors they hire are all pretty reasonable- but you have to know HOW to get a good payment agreement. They won’t simply offer it.
Note that this refers to federal student loan debts. Private school loans work just like any other debt and carry with them statutes of limitations.
If you have questions about viable, realistic options to manage your student debt, call us for a free consult, at 813-567-5855.
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