What you don’t know about your student loan forgiveness

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What you dont know about your student loan forgiveness

We’ve all heard about the student loan forgiveness:  work for 10 years at a non-profit, government, or medical field or work in the private or for-profit sectors for 20 or 25 years.  I was listening to
“60 Minutes” a few days ago and was shocked.  They had JAGs (lawyers who work for the military) who owe or owed student loans and thought that their loans would be repaid after a 10-year period.  These former students are super bright overachievers who had simply horrible experiences.  Take the 13 minutes or so to watch the video https://www.cbsnews.com/news/student-loan-debt-forgiveness-public-service-60-minutes-2021-10-03/.  

It was enlightening.

Then the Department of Education just announced fresh student loan forgiveness for the disabled this year and a new program for those in the public sector.  You can browse those quickly:

CNET:  https://www.cnet.com/personal-finance/student-loan-forgiveness-program-for-public-servants-gets-a-makeover/

NYT:  https://www.nytimes.com/2021/10/06/us/politics/student-loan-forgiveness.html

CNN:  https://www.cnn.com/2021/10/06/politics/public-service-loan-forgiveness-program-overhaul/index.html

You need to take action immediately:  you must sign up for the forgiveness to trigger the start of the program.  If you are on the 10-year track, then every year your employer must acknowledge your employment in one of the required fields.  Your student loan servicer must verify receipt of your employer validation.  Talk to your student loan servicer immediately to check your status.  Try to obtain documentation as to when your repayment began and that your annual employer signatures are duly noted.  Keep extremely detailed records – both physical copies and back-ups online.  Send everything by certified mail, return receipt requested so that you have proof of receipt by them.

Remember, if you become permanently and totally disabled, you can file an application with the Department of Education with authenticating medical proof.   Bankruptcy is a more difficult forum to discharge student loan for disability reasons but leaves a window for special cases.  My partner Aimee Kline and I would be pleased to help you navigate some of these challenges to achieving forgiveness of student loans.  Call us at 419.884.4600.

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