GREENSBORO, N.C. — I know you're hearing about more student loan debt being forgiven, $6 billion in all, but I have to tell you, this forgiveness you're hearing about today is tied to a program that has been around since 2007.
The Public Service Loan Forgiveness Program forgives the remaining balance on your loans after you have made 10 years of monthly payments and worked full-time for a qualifying employer. We're talking about first responders, nurses, teachers, librarians, social workers, EMT's, and more.
The President's announcement helped move things along and made good on the government's promises, which date back to 2007.
"The student loan system was broken, for them. They did everything they were told, they worked in public service, they made monthly payments and their student loan servicer lost their payments, didn't keep accurate records, didn't advise them about the rules of the program," said Mike Pierce/Exec. Dir. Student Borrower Protection Center.
The folks in the Public Service Loan Forgiveness program don't have to do anything to get what is coming to them, it's automatic.
But what about the rest of the folks who are hoping to have their student debt forgiven? This latest announcement could bring scam emails to the phones and computers of other borrowers.
"If you get any emails that say they can get you student loan forgiveness for a fee or promise forgiveness is a scam. Look up your loan servicer number, call them directly, and ask them any questions you may have," said Betsy Mayotte, President of The Institute of Student Loan Advisors.
The place to go if you have a question about your loan, who your servicer is, or what your payment is StudentAid.gov.
Mayotte says you should expect to hear about monthly emails going out that automatically forgive loans for those borrowers who are enrolled in the SAVE plan, have made at least 10 years of payments, and borrowed $12,000 or less originally.