Get Out of Debt Guy

Watch Out for Those Who Say Your Student Loans Can be Forgiven

Posted January 14, 2015

For those looking for legitimate student loan forgiveness help it seems there are bad actors and scammers just waiting to take advantage.

Some of the most ridiculous scams I've seen seem to circle around misinformation and bad advice for ridiculously high fees.

Don't get me wrong, it is entirely possible for have federal student loans forgiven.

I personally think the Public Service Loan Forgiveness program for federal loans is a great program. In this program, people who have covered employment can repay their student loans for less than the full payment and have the entire balance forgiven after ten years.

This program is not available for private student loans. Private loan holders are out of luck.

The types of jobs that qualify for this program include any employment with a federal, state, or local government agency, entity, or organization or a not-for-profit organization that has been designated as tax-exempt by the Internal Revenue Service (IRS) under Section 501(c)(3). These jobs include emergency management, military service, public safety, or law enforcement services; public health services; public education or public library services; school library and other school-based services; public interest law services; early childhood education; public service for individuals with disabilities and the elderly.

Even Parent PLUS Loans can be sneakily eliminated with this approach.

But it seems the perfect scam is when most of the information is true and some isn't. People assume it is all factual.

…Click here to read the rest of this article and some student loan forgiveness scam examples.

Steve Rhode
WRAL Get Out of Debt Guy

If you have a credit or debt question you'd like to ask about, how to get out of debt, just click here and ask away.

If you'd like to stay posted on all the latest get out of debt news and scam alerts, subscribe to my free newsletter.


Please with your account to comment on this story. You also will need a Facebook account to comment.

Oldest First
View all

About this Blog:

Steve Rhode has had careers in opthalmology, real estate and as the head of a nonprofit debt counseling firm. On his blog, he offers hard-won, free advice about getting out of debt, consolidation and making the right choices as you manage your money.