Income-Driven Repayment Programs for Federal Student Loans are a Mess

Income-Driven Repayment Programs for Federal Student Loans are a Mess

The Government Accountability Office (GAO) has just published a report examining Income-Driven Repayment (IDR) programs and how they are being managed. The findings are not encouraging. The Department of Education approved forgiveness for a total of 157 loans under Income-Driven Repayment (IDR) plans as of June 1, 2021, but has not taken the steps necessary … Read more

New Free Debt Relief Help if Your Student Loans Were Put Into Forbearance

New Free Debt Relief Help if Your Student Loans Were Put Into Forbearance

The Department of Education announced steps that will bring borrowers closer to public service loan and income-driven repayment (IDR) forgiveness by addressing historical failures in the administration of the federal student loan programs. Federal Student Aid (FSA) estimates that these changes will result in immediate debt cancellation for at least 40,000 borrowers under the Public … Read more

Only 32 Student Loan Debtors Had Their Loans Forgiven

Everyone knows the story about the hapless motorist who gets lost in rural Maine. When he finds a farmer and asks for directions, the farmer says, “You can’t get there from here.” The U.S. Department of Education must be staffed by Maine farmers. DOE has made it almost impossible for student-loan debtors to benefit from … Read more

Flushing Money Down the Toilet: Income-Based Repayment Plans for Student Debtors

Congress has been dropping “helicopter money” into the national economy–adding significantly to the national debt, which now exceeds $25 trillion. That’s a lot of money for our grandchildren to pay back. My own grandkids are ambivalent about this situation. My four-year-old says he thinks he can do it if his dad will increase his allowance, … Read more

Nearly All Department of Education Loan Programs Seemingly Broken Under DeVos

The Department of Education under Betsy DeVos seems to be broken when it comes to overseeing student loan programs. Deep issues are preventing debtors from getting access to programs and forgiveness under the law. The biggest broken programs are Public Service Loan Forgiveness, Borrower Defense to Repayment, Closed School Discharges, and now a new class-action … Read more

Student Loan Assistance Companies on Notice Now for Inflating Repayment Plans to Get $0 Payments

A long implemented trick by some student loan assistance companies has been to tell consumers they can inflate the number of people they support in order to reduce the monthly payment on Income-Drive Repayment (IDR) Plans. Consumers have reported and I’ve covered stories where sales representatives of student loan assistance companies, sometimes pretending to be … Read more

I Don’t Have Anything and Won’t Have Anything But This Damn Student Loan Debt

Question: Dear Steve, I have like 150k in loans, most federal but about 30k private, I My degree was worthless, fine art. I sure wish I never went to graduate school, but thought it would lead to a college job, thanks 2008. I’ve been putting the loans off for 10 years now. making some payments … Read more

Are Income Driven Repayment Plans a Scam for Federal Student Loans?

Question: Dear Steve, Hey there. I’m eligible for Income based student loan repayment of $0, but I can’t find anything that actually tells me what that means when I’m not paying any money towards the loans. Right now I’m paying around $70 a month, so what’s the catch of $0? Melissa Answer: Dear Melissa, The … Read more

Bankruptcy Court Again Finds Income Driven Repayment Plan Should Not Stop Federal Student Loan Bankruptcy Discharge

Here is another bankruptcy case from 2003 where the Court determined the fact someone could enroll or was on an Income Driven Repayment (IDR) plan was not a prevention to allowing a discharge of the federal student loans in bankruptcy. The Court records show the Judge said: “The ICRP is Only One Factor for a … Read more

Bankruptcy Groups Jump In to Support Student Loan Discharge to Avoid Cement Life Preservers

The National Consumer Bankruptcy Rights Center (NCBRC) and National Association of Consumer Bankruptcy Attorneys (NACBA) have decided to support the bankruptcy discharge in ECMC v. Murray with an outside briefing supporting the effort. The Murray case is very interesting in that the bankruptcy court agreed a substantial part of their student loan debt should be … Read more

Who is Reputable to Help Me Get My Student Loans Forgiven? – Bella

Question: Dear Steve, I graduated in 2007 with $90,000 in loans… since then i have been having babies and working very minimum and my loans were in forbearance. Now they are $160,000 and completely unaffordable. I cant even cover the monthly interest rate at this point let alone the actual loan. Do you know of … Read more

When You Make Student Loan Payments on an Income-Driven Plan, You Might be in for a Payment Shock

Aug 17 2015 By Seth Frotman Earlier this year, we asked you to share your #StudentDebtStress story. More than 30,000 of you answered, telling us about payment processing problems, servicing transfer snags, customer service confusion, and obstacles for borrowers in alternative repayment plans. You can check out the comments that were posted. For borrowers who … Read more

Student Loan Consolidation Opportunities and the Best Way to Lower Your Student Loan Payments

A frequent question we get on GetOutOfDebt.org has to do with student loans. Quite frankly many of them are a financial death sentence and a trap. Student loans are one of the worst debts you can owe. I’m not even sure owing a loan shark is worse based on many of the stories I’ve read … Read more