Don’t be fooled by student loan forgiveness misinformation
Writer: Paul Schattenberg, 210-859-5752, [email protected]
Contact: Nancy Granovsky, 979-845-1869, [email protected]
COLLEGE STATION – While there are genuine student loan forgiveness programs available, they do not apply to every type of student loan and they are not “instant or magical,” said Nancy
Granovsky, Texas A&M AgriLife Extension Service family economic specialist, College Station.
According to U.S. News and World Report, in recent years 70 percent of college students graduate with student loan debt, and in 2016 the average student debt for a college graduate was more than $37,000.
“Student debt is a tremendous long-term burden for many people,” Granovsky said. “So it’s not surprising that many graduates have no idea how or when they might be able to pay off this debt and that some may be vulnerable to offers that promise them a solution.”
She said students should beware of some offers on websites and elsewhere that give the impression they can provide relief in the form of “Obama Student Loan Forgiveness.”
“Some of these offers claim they provide access to Obama student loan forgiveness programs, but what they really do is charge the person a one-time or monthly fee for signing up for a repayment or consolidation plan the person can do for free,” she said.
Granovsky recommended people steer clear of offers on websites that sound too good to be true, and stick instead with what the U.S. Department of Education has to say concerning student debt and loan forgiveness,” she said. For that information, go to http://www2.ed.gov/fund/grants-college.html.
“This is an official and authoritative site about student debt and loan forgiveness programs,” she said.
Granovsky said two important student loan forgiveness programs include the Public Service Loan Forgiveness program and the Stafford Loan Forgiveness Program for Teachers, and details on these can be found on the U.S. Department of Education website.
She also noted the Federal Trade Commission website has reliable information on student loan debt relief. For that information, go to http://bit.ly/1UjOU1x.
“Information found on the nerdwallet website at https://www.nerdwallet.com also provides useful information and guidance,” she said. “On that site, there are a few sections – one called ‘Steer Clear of Obama Student Loan Forgiveness’ and another called ‘4 Ways to Get Federal Student Loan Forgiveness’ – and these give a realistic view of the student loan forgiveness program and how to seek student loan forgiveness.”
Granovsky said nerdwallet also has a website specifically for college students at https://nerd.me/2devwcE.
“While the burden of paying off student debt can be difficult, there are some legitimate ways to help reduce that pressure,” Granovsky said. “What’s most important is that people know what these legitimate options are and don’t get so anxious or desperate that they might fall prey to a scam.”