If you are one of those who’ve recently graduated, and are drowning in student debts, you’ve most likely heard of student loan forgiveness options. As you delve deeper into getting your student loan forgiven, keep in mind that not everything you read or hear is true. Here are some of the most common myths; experts have shared with us, about student loan forgiveness.
Myth #1 – Pay Someone To Get Loan Forgiveness Assistance
There are numerous online scams that charge student loan borrowers for assistance that is basically provided for free by the government. There are plenty of online tools and resources offered by the Department of Education, including the National Student Loan Data System, which are free.
If you need more help regarding anything that you don’t understand regarding your payment obligations, consider consulting a renowned lawyer who is well-versed in student debt law.
Myth #2 – Private Loans Cannot Be Forgiven
This is one of the most common loan forgiveness myths, and we get to hear this very often. However, experts say they’ve seen people get up to 50% of their private student debt settled. Although this is quite surprising, coming from a renowned lawyer, we don’t have much reason to doubt it.
Myth #3 – Bankruptcy Doesn’t Wipe Off Student Loans
Although a difficult and lengthy procedure, it would be unfair to call this impossible. You can declare bankruptcy and by fulfilling a few extra requirements you can go on to get your student loan forgiven. Additionally, you’ll have the advantage of not dealing with a debt collector, and will rather have to deal with an attorney. Most people get their payment plans reduced to an amount which is in line with their financial situation.
Myth #4 – Teachers Automatically Qualify For PSLF
There are certain requirements for the Public Service Loan Forgiveness program, and if you are a teacher at a for-profit school, you may not be entitled to use this option. There are a lot of hurdles related with this option and people in other public service professions are also disqualified from it even though they’re in public service.
However, it is important to understand all the requirements of the PSLF program before you decide not to pursue it, in case you miss out on an advantage.