Many students do not realize the importance of repaying their student loans in time as stipulated by the lenders terms and conditions. They forget that their credit reports are captured by credit bureaus, which makes it hard to access other loans from lenders. You can read 10 common student loan forgiveness myths. Therefore, repaying your loan is of paramount importance.
Remember repaying your loan helps other needy students achieve their dreams. And you delay paying it for one or more reasons; it is not the end of you. You can get forgiveness from your lender. However, do not be misguided by the following
Myths when seeking such forgiveness
Someone must help you get loan forgiveness
You do not have to pay anyone to get loan forgiveness. Do not be fooled by some online scams out to exploit borrowers to secure loan forgiveness on their behalf. This is a free service. All you need is to contact your lender and determine whether you qualify for forgiveness.
Bankruptcy cannot wipe out your student loan
Bankruptcy laws require that you must prove beyond reasonable doubt your inability to pay to be placed under “ hardship” .Although this condition is difficult to meet, a good lawyer can still design ways of helping you out to get bases on this laws.
You can only be forgiven if your loan is federal in nature
Loan forgives programs for private loans are few. In fact, they are rare to discourage students from seeking forgiveness even when they can repay. However, some lenders can still settle your private loan for less than the real full balance. This is not true. Any loan can qualify as long as long as your loan is classified as direct in nature.
Everyone can get student loan forgiveness
This is a misconception by most students seeking forgiveness. However, you must remember that forgiveness only applies to students with very large debts and have very low income, a case you must prove to your lender.
Forgiven loan does not attract taxes
This is just a myth. It is merely meant to misguide you as a student. This can land you in trouble with your tax collecting agency. It only depends on the type of loan you have. Only disabled students may qualify for tax exceptions.
Loan forgives myths can misguide you when seeking student loan forgiveness. Remember, loan forgiveness can only be found from relevant sources such as government agencies.