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Repaying student loans? Read this

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If you’re paying back your federal student loans, you might be interested in online ads saying things like, “Erase Default Statuses in 4–6 Weeks!” or – for the next few weeks – “Obama Wants to Forgive Your Student Loans!” Erasing default and loan forgiveness – sounds great to someone who owes a bundle, right?

Except here’s the deal: those ads take you to companies that want to charge you to get help with repaying your federal student loans – in some cases costing you hundreds or thousands of dollars. Want a better deal? You can get free assistance from the US Department of Education to do things like:

The Department of Education has declared Thursday, January 5th a day of action to help borrowers learn about their options. If you have federal student loans, read up before you make a repayment plan – and share these resources with anyone you know who’s also repaying student loans. Start at to learn about student loan repayment. And get some quick tips from the Department of Education.

Remember: you never have to pay to get help from the Department of Education to repay your federal student loan debt. Anyone who says otherwise is scamming you.

Blog Topics: 
Money & Credit


I would like to say I love this newsletter! It is very informative. The more I read about the federal student loans and knowing the interest that is charged on my sons loans, literally makes me ill.

Our President can pardon federal prisoners for their crimes but cannot seem to find a way to pardon the student loans for the citizens who are trying to better themselves??

The loans should be interest free. One's life and circumstances change. If a student has to take out a loan to better themselves by furthering their education and then cannot get a job in that area or has to quit school because of health issues they are still penalized.

6% interest on student loans? That rate is higher than the current mortgage rates and automobile rates and that is if you're blessed with good credit! That in and of itself is a crime! Yes they should have to repay the loan but not if this interest rate. It is highway robbery for a student trying to start out in life. How do you get a good credit rating when you over $30,000 in school loans and with that hanging over your head ??

Please pass this onto our President. Maybe he will think about pardoning some student loans instead of federal criminals. Thanks!

Jeri This message may have been dictated and not edited. Please excuse any grammatical errors.

Outrageously unthinkable; maybe unthinkably outrageous! Mine is 7% and I owe close to $200,000.00! More than three years after earning a PhD with borrowed (federal government) money, I am still searching for a job, and piling up interest! Any help will be appreciated.

Absolutely agree with you Jeri.

Just because you have student loans doesn't kill your credit. I have had upwards of 180k of loans which after 8yrs is down 90k. I also have an excellent credit score since I pay on time and make to to communicate with the loan companies if there are issues. Yes I still have on average 6% interest but if you pay on time there won't be any issues with your credit.

I am just reading this important message on student loans. I agree with the remarks having another agency to assist in lowering the debt with a higher interest is nonse sense. As I have said before the student loan is not mine debt I never received any funds from the US Dept. of Education to assist me with obtaining my degree. As I struggle to get a better job with a reasonable wage they try to make it difficult. I received information from the Department of Education indicating checks were mailed to me, only they were sent to another city same state. Even the lending bank said the checks were mailed to the school at that time. Now that my parents are deceased I understand how the checks were cashed. There were family members living at or near my parents home. The checks did not cash themselves an attorney suggested how the checks were cashed. It's a shame that all persons involved in this matter could be given a Lie-detector test. Moreover I contacted the Department to ask consideration due to hardship while I was working at my last employer; and it took my employer almost one year to stop deducting funds from my pay check. This behavior is certainly not correct nor is it constitutional. Persons with a student loan debt be it their loan or otherwise their should be remedies under the law to protect us. As the previous letter stated, "life happens" all the time. I wrote to ask {resident Obama to stop the debt until this matter was resolved, I got no answer at all. I thank God, for other means to acquire some of the knowledge that I need to obtain gainful employment. In closing, where is the protection for citizens of the United States that need protecting according to the United States Constitution.

It is high time that student loans be paid back at 1% interest. They should never accrue more interest as they are being paid back. Banks are crooks enabled by the federal government. How about taking care of the hard working citizens who had the fortitude to seek an education in this country which is only concerned with corporate greed and kickbacks for themselves.

What a great and informative article! Thank you, very much!

hello im a victim of hackers who have stolen my information and all my documents they even have pictures of my social birth certificate along with social security card....i have came to think from my credit bureaus that i have had some false information my name is william         and think some one have got some student loans in my name that shouldnt have been granted

You can get help with identity theft at You can report identity theft and get an official report to share with law enforcement. You can get letters and forms to share with businesses. You can create a personal account with check lists to help you complete steps to repair problems.

I also am horrified at the rate of paying back my daughter's student loan. I believe all the money we've paid back that it should have been paid back long ago. They figure the interest DAILY! Seems illegal. It's not like it's 6% at all. It's a big scheme if you ask me

My loan is at 9.25%. Borrowed total of $28K to help finance six years of school to earn a duo-tral M.S. in rehab counseling and addiction counseling. Have paid back $83K and still owe $30K. I'm 70 and working again because of 2008 crash and husband dying. Because I'm working I threw myself into higher tax bracket so pretty much screwed all the way around. Worked in public mental health over 10 years.Would have never done it if I had any idea I'll have to work until I die.

Iborrowed $18,000 in 1997. Couldn't find a job to both live, work and make student loan payments. Fast forward, DEPARTMENT OF EDUCATION, NYC,hired me then fired me within 1 1/2 years citing that I didn't pass required state exams.

Today, 17 years later we now know they lied. There is now a class action suit Gulino vs Board of Ed. I'm 62 years of age make $49k annually, downsized my living in a 3 room apt. to renting a room in a family members housing apt. Every morning I'm confronted with drug dealers and drug users as I leave for work at 5AM. Didn't have thus problem at my old apt.

Nonetheless, the $23,000 savings account I saved I just gave to Navient aka Sallie Mae. With interest my loan went to $ 28,000!. I now owe $7,000 plus and there is No emergency money.

It's a trick. As a Black Puerto Rican women I was told "go to school". The board of ed refused me an opportunity at a decent living. They owe me and others like me.

Finally, how is it that with a Masters degree from NYU over the years I qualified for NOTHING? Nothing except a civil service job with the NYPD that requires no educational credits as a civilian.

I was pimped at an opportunity to make something out of myself when all they wanted was another poor black person to take a loan.

By the way, I met with the attorneys who informed me that although I'm a legitimate client of the suit I financially qualify for NO settlement!!!!

Well, I heard what man said, but I believe God, see Jeremiah 51:36.

What about binding into contracts on line that u didn't know about till after it was to late. Any way o wipe those away

If a company tricked you into signing a contract online, or tricked you into signing a contract that requires you to make payments, you can file a complaint about the company withyour state Attorney General’s office.

You can also file a complaint with the Federal Trade Commission at The FTC can't help you with your complaint, but the information you give goes into a database that law enforcment uses to investigate businesses.

If you were tricked into signing a contract, and you are getting charged on your credit card, call the credit card company and tell them you want to dispute the charge. Ask them what you have to do to file a dispute.

Can you have your tax returns garnished, due to student loans in default? If so, wouldn't they have to give you notice and documentation? My sister is in, this situation, and she doesn't know who has garnished her returns.

I defaulted on a student loan in 1997 when I called Sallie Mae they screamed at me for collecting disability benefits and hiding in order to not be able to have wages garnished. It took years to default before I got that call. By the time they called me I was permanently disabled but not when i had the loans or paid for a few years afterwards. those people actually said I was a liar and the worst woman for not being able to pay. turns out this was not Sallie Mae but a worker who USED to work in an accounting area for them. SICK!

Hi. I went to ITT many years ago and they have closed because of fraud. Although I graduated I wasn't able to get a job in the field at the income they stated and they never helped me find employment which is the reason why I went to that school. I didn't need the degree I had obtained a Bachelor of Science two years prior. I was told it needed to be a private loan but that it was the same rules as a federal loan. My provider was Sallie Mae who worked with me on the lowest payment of $60. That was fine but when the loans were taken over by Navient that all changed. I couldn't afford their $180 payment and when I would call for deferment or forbearance I had to pay $50 every 3 months for a year. This left me with about $20 in my account the first time. Which I was under the impression that I didn't have to pay anything to receive a forbearance or deferment. Now I have been going back and forth via email because I do not want to discuss anything without it in writing about an income driven repayment instead. I heard back to today saying they don't have those forms and I would have to call only. I also sent in the application to have them forgiven since ITT closed and I feel like I was deserve to have this loan forgiven. Since I removed ITT from my resume I have had multiple interests and interviews. The two years prior I received no interviews or call backs, just rejections. I don't know who I am supposed to contact with my issue please help. Thank you.

The US Department of Education has information for people who went to ITT.

I have never had a student loan. I used the old GI bill to pay for college. Before NoMoRobo, I used to get regular calls from Sallie Mae. Some times I would call them back, but nothing I said mattered. The morons just wouldn't leave my land line alone. Fortunately for me, NoMoRobo seems to have classified Sallie Mae as a telemarketer, ya!

My extire tax returns was taking for 2015 and all the funds went to department of education and the fact that they took over 8,000 and I lost my apartment I'm currently still homeless and I'm also divorced and lost my vehicle to theft and to get even more worse my son was air lifted from school I had to miss work and I lost my job behind the the issues with my son and I don't have a good credit score because department of education and I was pressing the issues that the school was not accredited by no state and I have to pay for a service that I can't even get a job in the field I went to school for.I don't know what to do honestly about the filing for 2016 returns cause I was not offered a option to get my money back from 2015 returns cause I was really in the need for my money I worked hard for. I have a different outlook on the department of education and I have a difficult time with getting back right in my life

We (federal employees) received email traffic about public service federal loan forgiveness. The deal is that if you pay your student loans on time for 10 years, then the balance is forgiven. However, no one has had their loans forgiven as of this week. And, further, I've asked repeatedly for my pay off date and they won't give it to me. fedloan. org I feel like I was duped. I transferred all my loans to them. I trusted this offer because it came through our government HR system.

The US Department of Education has  information about the Public Service Loan Forgiveness Program. Go to that page to find out what jobs qualify, which federal loans qualify, get forms and more detailed information.

You could contact your HR department about the company that contacted you.  If you want to report a scam, please go to You can provide information about the company, what it promised, and what you got. The information you give goes into a database that law enforcement uses for investigations.

I need to know how collection companies for student loans can garnish wages and go into a persons bank account without allowing them to pay something or knowing if they can pay anything. Facing trying to pay $18k on top of a check that is right now barely covering all the normal bills. One thing i notice is that they use the gross which is not what you take home. How do you survive when everything going up except the paycheck.

This article about debt collection has some information about garnishment and the judgment a court enters when a debt collector successfully sues someone for an unpaid debt.

That Public Service loan forgiveness is a scam!!! The only way to achieve forgiveness is to pay your loans on time for 120 months, without missing a payment! Sounds great right? Now for the kicker... your loans are set for a 10 year repayment period!!! Sooo how do you qualify for forgiveness if you've made all your payments???

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