Student Loan Nightmare: Teacher in Wrong Payment Plan

This headline grabbing statement from the New York Times is all too true for many public service employees who are anticipating loan forgiveness through the Public Service Loan Forgiveness (PSLF)* program. We see this every day with people who believe making qualifying payments in the program but aren’t, resulting in lost time and wasted payments that don’t count towards forgiveness. The article highlights one teacher’s nightmare revelation.

“This month is supposed to be the first one when nurses, social workers, soldiers and teachers like Mr. Shafer become eligible for loan forgiveness. But he will not be among them for reasons that are straight out of the theater of the absurd.

In 2015, he discovered that he was enrolled in a particular type of ineligible payment plan and would need to start his decade of payments all over again, even though he had been paying more each month than he would have had he been in an eligible plan. About $70,000 in payments amounted to nothing.”

You Can Make Certain Your Employees Avoid This Nightmare

Make educational information on PSLF and student loan benefits from Fiducius available to your not for profit employees. They will receive:

• A comprehensive education about the PSLF program and other federal loan forgiveness programs for which they may be eligible from a student loan Advisor
• A detailed Student Loan Financial Wellness Plan outlining their payments and loan forgiveness savings based on their unique financial situation and life goals, if PSLF makes sense for them
• The option to hire Fiducius to make sure they are properly aligned with the PSLF program and making the right kind of payment
• Peace of mind knowing this nightmare will not happen to them
• Their expected loan forgiveness after making 120 qualifying payments
• A refinancing option with competitive terms and rates if federal loan forgiveness programs are not an option

*PSLF was enacted by Congress in October 2007 under the College Cost, Reduction and Access Act. This month marks the first-time early adopters have the potential to receive the loan forgiveness promised under the law. Unfortunately, many people counting on it will not receive the loan forgiveness they are expecting.

Want to start saving on your student loans? Visit https://studentloanreliefsm.myisls.com/register and enter code SM1

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