BUFFALO, N.Y. — Under the Heroes Act, Consumer Credit Counseling Service of Buffalo has a forgiveness program for educational loans that were taken out by students who entered service-oriented careers after graduation.

What You Need To Know

  • The forgiveness program was meant to incentivize people taking lower paying jobs
  • Consumer Credit Counseling offers services to help individuals complete the necessary steps
  • They can also explain more about the program and what it means

“The forgiveness program was supposed to incentivize people taking jobs that have been lower paying,” said Noelle Carter, Consumer Credit Counseling Service of Buffalo president. “You’re working for a nonprofit. You’re working for a public servant. You’re serving in the military.”

Though many were grateful when they heard about the program, there have been problems.

“This program started in 2007, so eligible borrowers were coming up for their forgiveness around 2017. After they submitted their applications, it was found that it has a 99% rejection rate,” added Carter.

There were a lot of disappointed borrowers who thought that their loan balances would be forgiven.

“The federal government recognized that as a problem and because of the Heroes Act, they were able to put into place some changes to the program and retroactively qualify payments that were not technically qualified for counting towards the 120 required payments,” explains Carter.

Now, there is action that needs to be taken: people need to make sure that they have direct loans, be in a qualifying repayment program and certify your employment.

Consumer Credit Counseling offers services to help individuals complete the necessary steps. They can also explain more about the program and what it means.