A lawsuit is filed against Ashford University to get a court order that will require them to pay back student loan forgiveness. In this case, the plaintiff, William Shernoff, accuses the school of misrepresenting its programs when it promised to erase its student debt after graduation.
After analyzing all public entities involved in this problem, we have found out that there are two main parties: government and any other parties involved one way or another.
Moreover, it is a good investment for the country. In turn, private colleges promise students that they will get jobs with high salaries after graduation, and then their student loans can be forgiven in several years. However, this lawsuit shows us how some institutions have been taking advantage of them by offering false promises to attract more applicants to acquire more funds from the federal government.
If you want more information about this case, please visit our blog.
The Public Service Loan Forgiveness (PSLF) Program
One prominent option for Ashford University students seeking loan forgiveness is the Public Service Loan Forgiveness (PSLF) program. This program is designed to encourage individuals to pursue careers in the public sector. If you work for a government organization or a qualifying non-profit organization and make 120 qualifying monthly payments under an income-driven repayment plan, you may be eligible for loan forgiveness.
This program presents a remarkable opportunity for Ashford University graduates who have dedicated themselves to public service. By combining your passion for public work with PSLF, you can pave the way towards financial freedom while making a positive impact on society.
Income-Driven Repayment Plans: Finding the Right Fit
To qualify for loan forgiveness under the PSLF program or other forgiveness options, you need to enroll in an income-driven repayment plan. These plans adjust your monthly student loan payments based on your income and family size, making them more manageable.
- Revised Pay As You Earn (REPAYE): This plan caps your monthly payments at 10% of your discretionary income, and any remaining balance after 20 years of qualifying payments may be forgiven.
- Pay As You Earn (PAYE): Similar to REPAYE, PAYE also caps your monthly payments at 10% of discretionary income, but forgiveness may be granted after just 20 years of qualifying payments.
- Income-Based Repayment (IBR): Under IBR, your monthly payments will be 10% or 15% of your discretionary income, depending on when you took out your first student loan. Forgiveness may be available after 20 or 25 years of qualifying payments.
- Income-Contingent Repayment (ICR): This plan calculates your monthly payments based on either 20% of your discretionary income or the amount you would pay on a 12-year fixed repayment plan, adjusted for income. After 25 years of qualifying payments, any remaining balance may be forgiven.
By choosing the right income-driven repayment plan, you can pave the way for potential loan forgiveness while managing your finances efficiently.
Teacher Loan Forgiveness Program
For those Ashford University graduates who pursued a career in education, the Teacher Loan Forgiveness Program offers an opportunity to alleviate debt. If you have been a full-time teacher at a low-income school for five consecutive years, you may be eligible for loan forgiveness of up to $17,500 on your Direct Subsidized and Unsubsidized Loans or your Subsidized and Unsubsidized Federal Stafford Loans.
This program acknowledges the vital role teachers play in shaping the future and provides a pathway to reduce educational debt for those committed to the field of education.
Perkins Loan Cancellation
Ashford University students who received Federal Perkins Loans during their studies may also qualify for Perkins Loan Cancellation. This program offers a percentage of loan cancellation for each year of qualifying service. For example, you may qualify for a 15% cancellation of your loan balance after the first and second years, 20% after the third and fourth years, and 30% after the fifth year of qualifying service.
Ashford university student loan forgiveness and scams
The Ashford university student loan forgiveness program is one of the most generous in the country. It promises to erase all federal loans for students who graduate from Ashford and meet a few other requirements.
For example, you must have been enrolled in an eligible degree program, completed at least 150% of the required coursework, and made steady progress toward achieving Ashford’s program.
The Ashford university lawsuit is an ongoing issue in public. The plaintiff accuses the school of misrepresenting its programs when it promised to erase its student debt after graduation. After analyzing all entities involved in this problem, we have found out that there are two main parties: government and any other party involved one way or another. For example, the federal government provides loans to students with low incomes who are about to graduate from college to get their degree and find a job afterward. This is why borrowers should check the institution they are applying for before signing any documents.
Otherwise, they might end up in the same situation as William Shernoff, who Ashford University deceived into getting student loans with high-interest rates. He had to use a co-signer when he applied for the loan. Ashford is now out of business, but its student loans are still in repayment. Eventually, they will be forgiven through the borrower’s income over time if everything goes according to plan.