Repaying student loans? Read this

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 StudentAid.gov/repay 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.

Tagged with: college, loan, student
Blog Topics: 
Money & Credit

Comments

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.

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 IdentityTheft.gov. 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.

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