What We Do
GOVERNMENT PROGRAMS & ENROLLMENT PROCESS OVERVIEW
The following is a condensed overview of IDR or IBR money-saving government programs and the common problems borrowers like you regularly experience with student loan servicers. In addition, you will understand why we, at Federal Student Loans Council and True Solution , are optimally equipped to assist borrowers like you enroll in these money-saving programs. Lastly, we will go over the things you need to do to start enrollment, the benefits you will enjoy by enrolling, and the process that will follow soon after, once your application has been accepted by the U.S. Department of Education.
INCOME DRIVEN PROGRAMS AND PUBLIC SERVICE LOAN FORGIVENESS PROGRAMS (PSLF)
The government income-driven or income-based repayment plans –IDRs or IBRs–were created to help borrowers like you lower your federal student loan payments. The main idea behind these forgiveness programs was to help students with large student debt or to help students with little or no income; some of these programs can bring your monthly payments down to $0 per month! (you can view example letters our enrollees commonly receive attesting to this fact at the end of this communication). The reason these student loan debt programs usually lower your monthly payments is because they are based on your income, family size, and profession –and NOT just on how much you owe! Therefore, if you repay your student loans under any of these government-sponsored plans, AND if you still have a balance after your repayment term, the remaining balance will be forgiven! (Time period varies depending on the plan and other factors).
Here are some links to study further:
- Affordable Care Act, Title II Education & Health
- Higher Education Act of 1965
- Obama’s FACT SHEET: “Help Americans Manage Student Loan Debt”
The Public Service Loan Forgiveness (PSLF) program, on the other hand, was originally created to encourage borrowers like you, to enter or remain in full-time service employment. The PSLF program allows you to receive forgiveness of the remaining balance of your Direct Loans after you have made 120 qualifying monthly payments while working full time for a qualifying employer. To receive forgiveness, you must remain employed with a qualified employer at the time you apply for and receive forgiveness for your loans. Once you enter into a public service job, you will have the option to enroll into the PSLF program.
ONGOING DIFFICULTIES BORROWERS REGULARLY EXPERIENCE WITH STUDENT LOAN SERVICERS
There are many ways in which your relationship with your student loan servicer can prove extremely frustrating if not detrimental. For example, the Consumer Financial Protection Bureau (CFPB) released a 148-page report in September 2015 outlining widespread servicing failures reported by both federal and private student loan borrowers. Consumers describe companies using a wide range of sloppy, patchwork practices that then created obstacles to repayment, raised costs, caused distress, and contributed to driving struggling borrowers to default.
- CFPB & U.S. Depart. of Edu Press Release About Servicing Failures
- CFPB Report on Widespread Servicing Failures
- CFPB Sues Nation’s Largest Student Loan Company for Failing Borrowers
- The 5 Student loan companies with the most complaints
The following is an excerpt from a press release by the CFPB (Consumer Finance Protection Bureau) announcing a lawsuit against servicer Navient for failing borrowers at every stage of the repayment process: “For years, Navient failed consumers who counted on the company to help give them a fair chance to pay back their student loans… At every stage of repayment, Navient chose to shortcut and deceive consumers to save on operating costs. Too many borrowers paid more for their loans because Navient illegally cheated them and today’s action seeks to hold them accountable.”
Still doubtful? Ask yourself this: When was the last time your loan servicer reach out to you to let you know about these money-saving government programs? Did your loan servicers ever reach out to explain IDR benefits? Prior to today, were you aware of these money-saving government programs? Do you think your servicers will ever call you with information on how to lower your monthly student loan payments? Give us a call today at 844-725-2752.