Many borrowers in the public assistance field don’t think about these nelnet student loan forgiveness programs. The education set out by the CFPB will help pay off the obligation for borrowers who remain in their public assistance occupations. Currently, there are many federal student loan obligation alleviation benefits that are educating and assisting borrowers to discover help with their loans. Such a large number of these specialists are leaving their responsibilities to secure better paying positions.
CFPB is with the expectation that along with assisting current public laborers with their obligation that spreading information about loan forgiveness programs will entice new students to go to class openly support fields. The forgiveness programs are set up to allow individuals to work through the actual programs. The alleviation is a free help from the Department of Education.Whether you are another or a student in the past, in the event that you are facing loan obligation and your work in a public assistance position, it is to your greatest advantage to see whether you qualify for the forgiveness program ahead of time. You can call one of these administrations for a free consultation to perceive what programs you may qualify for.
Nelnet is one of the major student loan servicers. Although its contract with the Department of Education was not extended, it will still serve for some time till the transition process ends. This huge loan servicing organization faced some claims against its operations during its contractual period.
However, it continued providing high-level service and informed students about financial matters. Nelnet is one of the companies that taught students about their forgiveness options. In this guide, we will present these Nelnet Student Loan Forgiveness opportunities in detail.
Before moving to the forgiveness programs, we will also briefly introduce Nelnet and discuss the recent events the loan servicer was involved in.
Usually, when students take loans, they get assigned to a loan servicer, and Nelnet is one of the federal loan servicers. It helps borrowers effectively repay their debt and maintain communication between the Education Department and the borrower.
Besides, Nelnet is the loan servicer that deals with Total and Permanent Disability Discharge; hence, borrowers who want to take advantage of this forgiveness program will be directed to Nelnet.
As a loan servicer, Nelnet ensures a smooth repayment process. Borrowers use Nelnet’s online platform, application, or call center to make payments for their loans. When they face financial challenges, they can also contact Nelnet to get assistance. In such cases, Nelnet provides options such as more affordable repayment plans, loan forbearance, or deferment statuses to ease the repayment process for a particular period.
Changes in Loan Servicing
In summer 2020, the U.S Education Department announced a change in the loan servicers’ list. The officials added five new loan servicers while ending an agreement with Nelnet and Great Lakes. The Education Department mentioned that they do changes to increase customer service quality and keep the loan servicer responsible for their actions. However, Nelnet is one of the highest-rated services. Hence, Nelnet stated their disappointment with the decision.
The contract of Nelnet should end in December 2020. However, the transition process from one loan servicer to another usually takes much time. Therefore, extensions up to a year are possible.
Unfortunately, when the transition process starts, data can be lost, customers can face unexpected penalties, late payments, etc. In general, such a change leaves borrowers confused. For these reasons, the Education Department should ensure the new loan servicers have proper training and assets to manage the data and payments. The transition process should eliminate errors and be smooth for the borrowers. Therefore, some time is required until Nelnet’s service is fully stopped.
Compared to some other loan servicers, Nelnet faced fewer claims against its operations during the last decade. One of the most recent lawsuits against Nelnet was filed in June 2020. Five borrowers started this case by mentioning that Nelnet was responsible for negligence and contract breach.
According to the plaintiffs, the loan servicer did not process the required documents, certificates for Income-Driven Repayment plans on time. Hence, some of them lost their progress toward forgiveness programs.
Nelnet Student Loan Forgiveness
Despite a few claims against Nelnet, it provides high-level service to borrowers dealing with financial challenges. It is possible to get much information about the repayment plans, processes, or forgiveness options on Nelnet’s official website.
As mentioned before, Nelnet is the federal loan servicer of Total and Permanent Disability Discharge. Hence, we will first start discussing this Nelnet Student Loan Forgiveness option. However, Nelnet also advises several other forgiveness opportunities on its website. Therefore, we will present these programs in detail, too.
Total and Permanent Disability Discharge
This Nelnet Student Loan Forgiveness program helps borrowers eliminate Direct, FFEL, Perkins loans, or avoid meeting TEACH Grant’s service obligations. In return, borrowers need to prove their total and permanent disability through documentation and apply for discharge. As mentioned, Nelnet is the loan servicer for this discharge program. Hence, if you want to benefit from this program, you need to submit the application to Nelnet.
Eligibility Requirements for Nelnet Student Loan Forgiveness
The eligibility conditions for this discharge program is easy to meet if the borrower is disabled. The program requires documentation, which is the most important part of the eligibility process. Borrowers can get this document proving their disability conditions only from three sources-Veteran Affairs Department, Social Security Administration, or a Physician.
Depending on which source you choose, the application process can change. Veterans can qualify for this Nelnet Student Loan Forgiveness program if they get a document from VA, showing a total – 100% disability- based on a service-connected incident or unemployment ability rating.
Borrowers eligible through Social Security Insurance for Disability should submit a copy of the notice of award. Alternatively, they can provide the Benefits Planning Query. This query should present information that the borrower has a schedule for review in five to seven years.
The good news is that the Education Department works closely with Veteran Affairs and Social Security Administration. Hence, if a student loan borrower is registered in these departments, and he/she qualifies for discharge, the Education Department will automatically shortlist the debtor for forgiveness. In this case, the debtor does not need to prove disability through documentation. All the borrowers need to do is submit an application.
If you want to get disability proof from a physician, you need to receive a certification that shows your disability could lead to death, continued for a minimum of 60 months, or is expected to continue for a minimum of 60 months. Physicians should ensure that due to the disability conditions, the borrower cannot engage in gainful employment activity. If you use this source, also make sure that the Physician has a valid license.