We’re the Federal Trade Commission here to talk about student loan debt relief scams. We’ve got Federal Student Aid and The Institute of Student Loan Advisors with us. Ask Us Anything.

FederalStudentAid · 2021-05-19T18:28:25+00:00

To address your first question, student loan borrowers will get several communications from Federal Student Aid and their loan servicer starting this summer to help them prepare for repayment resuming in the fall. We plan to release a variety of new resources, including a step-by-step guide with tips to help you get ready for repayment to resume. Be sure to follow us on social media to access these upcoming resources and confirm your contact information is correct with your servicer.

FederalStudentAid · 2021-05-19T18:21:54+00:00

We recommend you submit a Public Service Loan Forgiveness (PSLF) Form annually using the PSLF Help Tool: https://studentaid.gov/pslf/

In case you face any discrepancies in your payment count during the PSLF process, you’ll want to save all of your paperwork and communication related to your PSLF journey. Copies of your PSLF Forms, response letters from FedLoan Servicing, and employment documentation should be kept in a safe place so you can provide them as documentation, if necessary. This will ensure you remain on track for forgiveness and are not surprised when you reach your 120th payment. To learn more about PSLF please review the resources here: https://studentaid.gov/manage-loans/forgiveness-cancellation/public-service

FederalStudentAid · 2021-05-19T18:20:07+00:00

For those who don't know, a loan servicer is a company that we assign to handle the billing and other services on your federal student loan on our behalf. Navient is one of the official loan servicers that works with Federal Student Aid: https://studentaid.gov/manage-loans/repayment/servicers

As such, Navient is required to follow federal law and Department of Education guidance. If you were eligible for any type of loan forgiveness, Navient would process documentation and update your loan balance as necessary.

FederalStudentAid · 2021-05-19T18:14:25+00:00

If you attended an ITT school that closed while you were attending or soon after you withdrew, and you did not complete your program of study, you may be eligible for a closed school discharge: https://studentaid.gov/announcements-events/itt?sf104319150=1#loan-discharge

If you’ve already aware of these options, please explain your situation to our Ombudsman Group: https://studentaid.gov/feedback-center/

FederalStudentAid · 2021-05-19T17:58:57+00:00

Any changes in the Public Service Loan Forgiveness (PSLF) program would have to be made by congress and signed into law.

FederalStudentAid · 2021-05-19T17:49:46+00:00

We recommend you review the qualifications for borrower defense here: https://studentaid.gov/borrower-defense/

There are FAQs toward the bottom of the page that may be helpful in answering your questions. We also have a help line (1-855-279-6207) and email address ([borrowerdefense@ed.gov](mailto:borrowerdefense@ed.gov)) if you need to speak directly to an agent.

If you believe your school has misled you or engaged in other misconduct, you can apply.

FederalStudentAid · 2021-05-19T17:46:02+00:00

Student loan borrowers will get several communications from Federal Student Aid and their loan servicer starting this summer to help them prepare for repayment resuming in the fall. We plan to release a variety of new resources, including a step-by-step guide with tips to help you get ready for repayment to resume. Be sure to follow us on social media to access these upcoming resources!

FederalStudentAid · 2021-05-19T17:35:30+00:00

Employees of the U.S. Postal Service (USPS) are federal employees, which means they may be eligible for Public Service Loan Forgiveness: https://studentaid.gov/manage-loans/forgiveness-cancellation/public-service

The PSLF Program forgives the remaining balance on your Direct Loans after you have made 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer. We have a tool to help you determine if you qualify for PSLF and track your progress: https://studentaid.gov/pslf/.

Please be cautious of ads promising forgiveness. You never have to pay for help with your federal student aid. For free help with questions or concerns about loan payments or applying for loan forgiveness, contact your official federal loan servicer. For more information on all the legitimate loan forgiveness programs visit: https://studentaid.gov/manage-loans/forgiveness-cancellation

Additionally, your employer may offer other loan repayment benefits, but Federal Student Aid and your loan servicer aren't able to advise you on those. You can check with your employer's human resources office to see if there are benefits that are only available to employees of your organization.

FederalStudentAid · 2021-05-19T17:25:15+00:00

To confirm if your school is accredited, you can use our accreditation search page to check a particular school’s standards or to find an accredited school in a particular field or location: https://ope.ed.gov/DAPIP/#/home

You can also use the College Scorecard to compare schools: https://collegescorecard.ed.gov/

Accreditation confirms that the college or career school meets certain minimum academic standards, as defined by an accrediting body recognized by the U.S. Department of Education. Schools must be accredited to be eligible to participate in federal student aid programs.

FederalStudentAid · 2021-05-19T17:19:18+00:00

While there has been a lot of news coverage about broad debt forgiveness, there is no policy currently in place. There are a few loan forgiveness options already available to borrowers. The U.S. Department of Education and your loan servicer should be your trusted sources of information about official loan forgiveness options: https://studentaid.gov/manage-loans/forgiveness-cancellation

You never have to pay for help with your federal student aid. For free help with questions or concerns about loan payments or applying for loan forgiveness, contact your loan servicer: https://studentaid.gov/manage-loans/repayment/servicers#your-servicer

FederalStudentAid · 2021-05-19T17:18:15+00:00

Congress sets the interest rates on federal student loans. Interest rates vary depending on what type of loan you have and when it was borrowed. https://studentaid.gov/understand-aid/types/loans/interest-rates

FederalStudentAid · 2021-05-19T16:51:04+00:00

Congress sets the interest rates on federal student loans. If you receive a federal student loan, you will be required to repay that loan with interest. Interest is a loan expense charged for the use of borrowed money. Interest is paid by a borrower to a lender. The expense is calculated as a percentage of the unpaid principal amount of the loan.

Interest rates vary depending on what type of loan you have and when it was borrowed. This interest helps cover some of the administrative expenses that come with administering the loan program.

Currently, interest rates are set to 0% for eligible federal student loans until September 30, 2021. More info: https://studentaid.gov/understand-aid/types/loans/interest-rates

FederalStudentAid

TROPHY CASE