Resolvly, assisting those in need of debt resolution, answers why so few have received student loan forgiveness.
BOCA RATON, FLORIDA, UNITED STATES, May 26, 2021 /EINPresswire.com/ — Resolvly LLC addresses the topic that left millions of people with student loans scratching their heads in confusion: Why did only 32 people out of millions get their student loan debt forgiven?
The Boca Raton-based company is a Florida Bar-approved lawyer referral service helping clients find debt resolution by connecting each unique situation with the right consumer protection attorneys that specialize in debt resolution.
According to a recent report published in March 2021, 45 million Americans are in debt due to student loans. Of those 45 million people who as a whole owe 1.7 trillion dollars in student loan debt, 8 million are, at this time, enrolled in the federal government’s income-driven repayment (IDR) plans. IDR plans use an individual’s income, family size, and state of residence to determine a monthly student loan payment. Any student loan debt left after 20 or 25 years the plan promises to cancel. Though IDR plans have been in motion for more than 25 years, the National Consumer Law Center (NCLC) and the Student Borrower Protection Center reveal that only 32 people have had their IDR plan promise fulfilled and received loan cancellation through the program.
As found in the latest analysis of government data, the number of borrowers repaying their student loan debt for more than 20 years and still owe undergraduate student debt is a whopping two million.
The NCLC and Student Borrower Protection Center state that the reason for so many still being in student loan debt in comparison to so few achieving cancellations through IDR plans is because borrowers were not adequately guided towards the correct income-driven repayment plans by student loan servicers. The lack of accurate direction from student loan servicers resulted in student loans still being paid off by borrowers when they could have been granted student loan cancellation. Poor advice from a student loan servicer, confusion from a complicated student loan repayment system, or being enrolled in a sub-optional student loan repayment plan are all contributors to the blame for so many individuals continuing to pay off student loans without relief.
The first available IDR plan to those who owed student loans came into existence in 1995. Income-Based Repayment (IBR), Pay As You Earn (PAYE), Revised Pay As You Earn (REPAYE), and Income-Contingent Repayment (ICR) are the four types of IDR plans. IDR plans promise to cancel undergraduate student loans after 20 years and graduate student loans after 25 years. The cancellation takes care of an existing student loan debt balance after monthly student loan payments have been fulfilled for that allotted amount of time.
For those still struggling to find financial freedom from a private student loan, organizations like Resolvly are here to help. To find additional information on how to schedule a free consultation with Resolvly, check out their website at http://www.resolvly.com, or call the toll-free number (866) 955-5047.
Resolvly is a Florida Bar-approved lawyer referral service that helps clients nationwide connect with consumer protection attorneys that specialize in debt resolution. The Boca Raton-based company was founded in 2015 and has helped thousands of Americans find the right legal-based solution to reduce or dismiss their unsecured debt. Resolvly works with a network of attorneys that will protect and enforce their clients’ legal rights.