Erase Student Loan Debt Now

Do you or someone you know have a student loan?

Are you looking for a way to erase student loan debt?

If so, we have some GOOD NEWS…

The Department of Education has announced steps that will help borrowers better manage their student debt. This includes more manageable payment options & better tracking of payments.

Finally!

Federal Student Aid (FSA) estimates that these changes will result in immediate debt cancellation for at least 40,000 borrowers. Several thousand borrowers with older loans will also receive forgiveness through IDR.

More than 3.6 million borrowers will also receive at least three years of additional credit toward IDR forgiveness.

They also help address the impact of the COVID-19 pandemic on borrowers with lower incomes and high debt loads. Today’s steps will help restore the promise of IDR plans.

Beyond the immediate corrective actions announced that will provide relief to borrowers harmed in the past, FSA will take action to ensure that borrowers receive these benefits in the future. Below are the actions being taken…

►Ending “Forbearance Steering”
Department regulations require that borrowers who are facing difficulty making their loan payments get clear and accurate information. However, FSA reviews suggest that loan servicers placed borrowers into forbearance in violation of Department rules.

A borrower advised to choose an IDR plan instead of forbearance can get a reduced payment.

The Department says it will address forbearance steering by:

►Conducting a One-Time Account Adjustment to Count Certain Long-Term Forbearances toward IDR and PSLF Forgiveness
Borrowers steered or inappropriately placed into long-term forbearances miss out on critical progress toward IDR and PSLF forgiveness.

The Department’s regulations and servicer contracts have safeguards

This includes a 12-month limit for any single use of forbearance, and a 36-month cumulative limit on discretionary forbearance. A review of past forbearance use shows that long-term use of forbearance was remarkably widespread.

More than 13% of all Direct Loan borrowers between July 2009 and March 2020 have used forbearance for at least 36 months cumulatively. These changes will be applied automatically to borrowers’ accounts later this year.

To mitigate the harms of inappropriate steering into long-term forbearance, FSA will conduct a one-time account adjustment that will count forbearances of more than 12 months consecutive and more than 36 months cumulative toward forgiveness under IDR and PSLF. 

►Increasing Oversight of Servicers’ Forbearance Use
FSA will target forbearance steering by restricting servicers’ ability to enroll borrowers in forbearance by text or email, conducting an external review of patterns of forbearance use and servicers’ practices to identify other potential changes to address steering, and working in partnership with the Consumer Financial Protection Bureau to do regular audits of forbearance use.

►Tracking Progress Toward IDR Forgiveness
IDR plans offer substantially lower monthly payments for most borrowers. Borrowers on most plans are entitled to forgiveness after 20 years of payments and depend on FSA and its servicers to accurately track their progress toward relief. However, the Department’s review of IDR payment-tracking procedures has revealed significant flaws that suggest borrowers are missing out on progress toward IDR forgiveness.

Secretary Cardona has directed FSA to:

►Conduct a One-Time Revision of IDR Payments to Address Past Inaccuracies
To fully address past issues with IDR payment counting, FSA will do a one-time revision of IDR-qualifying payments for all Direct Student Loans and federally-managed Federal Family Education Loan Program (FFEL) loans.

Any months in which borrowers made payments will count toward IDR, regardless of repayment plan. Payments made prior to consolidation on consolidated loans will also count. Any borrower who has made the required number of payments for IDR forgiveness based on this payment-count revision will receive loan cancellation automatically. Additionally, FSA will count months spent in deferment prior to 2013 toward IDR forgiveness (with the exception of in-school deferment).

►Fix IDR Payment Counting by Reforming FSA’s IDR Tracking
Borrowers should be able to rely on FSA and its loan servicers to keep accurate records of their progress toward forgiveness through IDR plans.

FSA will issue new guidance to student loan servicers to ensure accurate and uniform payment counting practices, and it will track payment counts in its own modernized data systems. In 2023, FSA will begin displaying IDR payment counts on StudentAid.gov so borrowers can view their progress after logging into their accounts.

In addition, the Department plans to revise the terms of IDR through rulemaking to further simplify payment counting by allowing more loan statuses to count toward IDR forgiveness, including certain types of deferments and forbearances.

Or Why Not Just Erase Student Loan Debt NOW…

Learn How Debt Removal Secrets Can Help You

Now for the Great News…

You could wait for all of the above to be implemented, hope you qualify and pay a little less OR…

You could cut through all the crap and just erase the debt now.

The choice is yours, but why wait when you can get this out of the way starting NOW?

Besides student loans, this process works for personal and other debts covered under the FDCPA. This includes bills for medical care, charge accounts, utilities, personal loans, credit cards, etc.

While it’s awesome that over 3 million people will be receiving some sort of student loan forgiveness –

We both know that the majority of people won’t be receiving full debt forgiveness and since it’s from the government – it’ll come with strings attached too (for example – taxes)…

Wouldn’t you rather just erase student loan debt for good?

If your student loan debt is in collections or about to go into collections, NOW is the time to get started.

Learn how Debt Removal Secrets can set you free.

Do you know what ‘presentment’ means and how it relates to debt? Look out for tomorrow’s post where we’ll answer this important question & more.

Your friends in finance,
Private Wealth Academy