A student loan servicing company that handles accounts for millions of borrowers nationwide now stands accused of preying on people in a federal program that forgives the loans of borrowers who work in public service and education jobs. [More]
forgiveness
Major Student Loan Company Accused Of Overcharging, Delaying Forgiveness For Some Borrowers
By 8.23.17
Lawmakers Ask Education Secretary DeVos To Explain Delayed Loan Forgiveness For ITT, Corinthian Students
By 5.18.17 — Updated: 5.25.17
Thousands of former students at bankrupt for-profit schools run by ITT, Corinthian Colleges, and others are still on the hook for millions of dollars in student loans, even though the Department of Education approved their claims for a refund. Now, lawmakers want Education Secretary Betsy DeVos to explain why. [More]
Trump Administration Looking To End Student Loan Forgiveness Program
By 5.18.17
This October will mark the first time that student loan borrowers who have worked for 10 years with the government or a qualifying non-profit will be eligible to have their debts wiped clean. It may also be the last time, as the Trump administration is reportedly targeting this and other Department of Education repayment programs for elimination.
[More]
Student Loan Repayment Programs Will Eventually Forgive $108B In Debt
By 11.30.16 — Updated: 12.2.16
While several recent reports have suggested that many student loan borrowers face needless hurdles when trying to reduce their monthly payments through the Department of Education’s income-driven repayment plans, a new study has found the programs are working and will eventually forgive $108 billion in outstanding student debt. [More]
Feds Will Notify Disabled Borrowers Eligible For Student Loan Discharge
By 4.13.16
Under the law, borrowers who are permanently disabled are eligible to have their federal student loans discharged. While the government has taken steps in the past to make the process more streamlined for consumers, the Department of Education will now proactively seek out eligible borrowers. [More]
Dept. Of Education Plans To Overhaul Loan Forgiveness Program For Students Defrauded By Schools
By 8.20.15
As thousands of former Corinthian College students continue to wait to learn whether or not they’re on the hook to repay billions of dollars in student loans they took out to attend the now defunct for-profit college, the Department of Education announced plans to overhaul the loan forgiveness process for students who believe they have been defrauded by their colleges. [More]
Groups Say Proposed Student Loan Plan Doesn’t Provide Enough Assistance
By 8.10.15
The Dept. of Education recently proposed regulations intended to make the student loan repayment process less burdensome and drawn-out. Nearly two dozen consumer advocacy groups say that while these rules should help borrowers, more could be done to ensure that all students benefit. [More]
Mystery Man Visits Grocery, Confesses To Armed Robbery, Pays Store Back $400
By 9.9.13 — Updated: 9.10.13
It was kind of weird: a visitor to an Asian grocery/sandwich shop had an envelope in his hand that he would only give to the store’s owner. When the owner’s son hesitated, the mystery courier set the envelope down on the counter and left. The envelope contained $400 and a note, which confessed to an armed robbery of the shop a dozen years ago. [More]
Man Gets Verizon To Forgive $18K Phone Bill After Four Years
By 5.18.10
Don’t let your child run off with your cell phone. Not unless you want to risk the chance of the whippersnapper racking up $18,000 in charges and having to tangle with the service provider for the length of a presidential term in order to get it overturned. [More]
POLL: GM Sorry It Disappointed You, Do You Forgive Them?
By 12.10.08
General Motors took out an advertisement apologizing for “disappointing” consumers on Monday, asking your forgiveness for years of incompetance. Do you forgive them?
Collection Agencies Sending Out 1099-C Forms For Zombie Debts?
By 2.8.08
It seems that some bottom-feeding debt collection companies—the ones who buy old debts that are frequently beyond the point where you can be sued for collection (what the FTC calls “time-barred debts”)—purchase old debts, mark them up with incredibly high penalties and fees, then “forgive” them and write them off as tax losses and send the debtors 1099-C forms—which means you have to pay taxes on the forgiven amount. If this happens to you, here are a few things you should consider first.
