A federal appeals court decision issued last week brought federal student loan debtors wanting to have their debt forgiven as a result of academic dishonesty one step closer to finding relief.
Although it is unrelated to the federal student debt forgiveness scheme of the Biden administration, which is now under review by the US Supreme Court, it might result in $6 billion in student loan forgiveness for more than 200,000 borrowers.
Delaying the cancellation of student loans and other debt relief
In a decision to settle so-called borrower defense to repayment claims, the Ninth Circuit Court of Appeals rejected a request on March 29 that would have further delayed student loan forgiveness and other debt relief.
In a decision to settle so-called borrower defense to repayment claims, the Ninth Circuit Court of Appeals rejected a request on March 29 that would have further delayed student loan forgiveness and other debt relief.
If your school misled you or engaged in other misconduct in violation of certain regulations, you may be legally entitled to have your federal student loans discharged. This is known as a borrower’s defense to repayment.
The program was announced on a new website created by the Federal Student Aid division of the US Department of Education, under the name “Borrower Defense Loan Discharge,” as previously reported by GOBankingRates.
According to the Education Data Initiative, student borrowers in America owe their lenders a total of $1.76 trillion.
You can be sure that thieves will try to take as much of the money as they can for themselves when there is that much money involved.
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Scams that borrowers need to know about
Every month last year, borrowers got 700 million robocalls on student loans. While many were unquestionably honest, some were frauds that often fit into one of the three categories listed below.
- Student Loan Forgiveness and Elimination Scams
- Student Loan Consolidation Scams
- Student Loan Negotiation Scam
The US Federal Student Aid (FSA) administration claims that scammers are contacting borrowers and taking advantage of the false information surrounding the situation.
The caller claims that the borrower’s debt qualifies for a full discharge but that they must move quickly since applications are accepted on a first-come, first-served basis or the program will soon expire. The specific terminology used varies, but the tone is usually frantic.
They usually try to get your private information, including your FSA ID, which the Department of Education and its partners never ask for, and/or charge for an upfront or ongoing cost.
Several related hoaxes include the promise of canceling, forgiving, or otherwise getting rid of your debts without particularly mentioning federal programs or presidential initiatives.
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