Student loan forgiveness is an attractive prospect for people with student loans. It is especially appealing to individuals who are currently struggling with financial difficulties during this pandemic.
In response to the challenging economic situation of the nation, the U.S. government has forgiven the loan balance of borrowers from certain schools. It has also temporarily paused some loan payment requirements while the pandemic is ongoing.
However, scammers have taken advantage of the growing interest in loan forgiveness, posing as government agencies and similar organizations. Now, borrowers like you are probably wondering: “Is student loan forgiveness a hoax?”
In this article, you’ll learn how to identify and utilize legitimate student loan forgiveness options to improve your financial situation.
Is Student Loan Forgiveness a Hoax?
Student loan forgiveness that is offered by the U.S. government to eligible borrowers is definitely not a hoax.
However, while loan forgiveness is real, it is true that scammers may take advantage of its existence to deceive people. To be realistic, not all debtors are familiar with the details of student loan policies.
CNBC explains that swindlers take advantage of this. A scammer may contact borrowers and pretend to be a staff member of the U.S. Department of Education or other agency. Your security may be compromised if you unknowingly share your sensitive personal information with these impostors.
In case you receive a call, email, or letter regarding loan forgiveness, verify first that the person you are communicating with is a staff member of a real government agency before you provide your social security number, federal student aid ID, or bank account details. When in doubt, contact the government office directly to confirm the validity of the message or phone call.
Is Student Loan Forgiveness Real?
You may be curious to find out: “Does student loan forgiveness really work?” The answer is a resounding yes.
The U.S. government does offer real loan forgiveness to qualified individuals. A forgiveness program can free borrowers from the responsibility of paying back all or a portion of their loans.
The official Federal Student Aid website notes the legitimate student loan forgiveness options that you can apply for:
- Public Service Loan Forgiveness (PSLF): You may be eligible for PSLF if you are a full-time worker employed by a U.S. federal, state, local, or tribal government agency or a non-profit organization. PSLF is available for nurses, firefighters, and other public servants.
- Teacher Loan Forgiveness: You may be qualified for Teacher Loan Forgiveness in case you have been a full-time teacher for five complete and consecutive academic years in a low-income elementary school, secondary school, or educational service agency.
- Income Driven Repayment (IDR) Loan Forgiveness: While not an official program borrower’s who make the required number of payments under an income-driven repayment plan may also be eligible to have the remaining loan balance at the end of their repayment term forgiven.
Avoid Hoaxes by Applying for Legitimate Student Loan Forgiveness Programs
Don’t let the proliferation of student loan forgiveness scam calls discourage you from experiencing debt relief through verified forgiveness programs. Just make sure to communicate directly with government agencies or your loan servicer to explore your forgiveness options.