08 December 2016

Student Loan Forgiveness for Private Debt. Does it Exist?

Photo of wallet with corner of two dollar bill sticking out.

Private student loan forgiveness does exist—but it’s rare.

Federal Student Aid defines loan forgiveness as:

The cancellation of all or some portion of your remaining federal student loan balance. If your loan is forgiven, you are no longer responsible for repaying that remaining portion of the loan.

Therefore, by definition, student loan forgiveness (and it’s other other incarnations—discharge, & cancellation) are for federal student loan debt.

That’s the rule.

Of course, like most rules, there are exceptions.

We are aware of just two.

  1. Discharge in Bankruptcy
  2. Student Loan Benefits for Military Service

Bankruptcy Can Discharge Private Student Loans.

Private student loans (as well as Federal Student Loans) can be forgiven/discharged through bankruptcy if you can prove that repayment would cause you ‘undue hardship’.

This can be challenging.

Your hardship must be tested in an adversary proceeding in bankruptcy court. So you will probably want a lawyer.

But lawyers cost money—sometimes lots of money.

So you will probably not want a lawyer.!

How can anyone afford a lawyer while in the midst of a severe financial hardship?

It's a pickle for sure.

Nolo (do-it-yourself) may be your only option—but at least it's an option.

Check out the Brunner Test to help you determine if this may be something you want to pursue.

Military Service Can Forgive Private Student Loans.

Military service can really blur-the-lines between federal and private student loan debt.

Most student loan benefits—such as loan forgiveness, payment deferment, and disability discharge—are only for federal student loan debt.

Thankfully, membership has it’s privileges.

Service in the US Armed Forces includes all federal student loan repayment benefits (of course!) plus several more that can affect private student loan debt.

These benefits may include...

  • Private student loan forgiveness
  • Interest rate cap on private student loans
  • Deferment of private student loan payments

To name a few.

For a more comprehensive list of military student loan benefits please review the PDF released by Federal Student Aid.

Thank You.
We want to take this time to thank everyone who has served in the US Armed Forces. You are a patriot for helping keep us safe.

Good luck with student loan forgiveness.

Please help us learn more.
Do you know of other ways to forgive private student loan debt?
Please let us know by leaving a comment below.

10 November 2016

Consolidate Credit Cards the Easy Way.

Stack of credit cards with caption. Consolidate and No Credit Check.
Just how easy?

  1. Bring no collateral.
  2. Apply over the phone.
  3. Get approved without a credit check.


What's the secret?

Consolidating the payment instead of trying to consolidate the principle.
You will get the same—[better!]—results with much less hassle.

  • One consolidated payment
  • A drastically lower interest rate
  • Happy creditors and a quiet phone

Why is it better?

One huge reason.

Consolidating the payment results in paying off the debt—because it must. Each payment significantly reduces the principal on each card.  When every card reaches zero the program is complete.  

And VoilĂ .

Your credit card debt is gone.

You will pay less per month.

Take a quick glance at your checkbook. Add up all of your monthly credit card payments.

See that amount?

Your new consolidated payment will be lower—often significantly lower!

Ask us if you qualify.

Simply complete our short contact form.

The next available debt counselor will help you qualify your debt and provide your estimates. Quickly determine your...

  1. Consolidated payment
  2. Fixed Interest Rate
  3. Number of payments
  4. Projected money saved

Let’s make your next payment a consolidated one.

Contact us today!

Debt Shop

Click for the BBB Business Review of this Credit & Debt Counseling in Memphis TN

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06 November 2016

What is Public Service Loan Forgiveness?

Man on Peak at Sunrise pointing to caption ‘the mighty PSLF’.

Evidence that occasionally the government can do something right!  

When it comes to student loan forgiveness, the Public Service Loan Forgiveness Program is in a class by itself.  Three big reasons...

  1. It can erase all of your federal debt.
  2. It’s tax-free forgiveness.
  3. It’s twice as fast as the best income-driven forgiveness plan.

Told you! Sweet, huh?

Student loan forgiveness without limits.

On the day you complete the PSLF program all of your qualifying federal debt will be erased—all of it. That is the promise.  

If you are looking for a way to wipe out a large amount of federal student loan debt. This is it.

There is no limit to the amount of debt that can be forgiven through the PSLF program. It’s that powerful.  

Tax-free student loan forgiveness.

Some people are always in search of the negative. Surely you have heard them already. Crowing all the time about the dangers of student loan forgiveness and the taxman.  

Well PSLF puts a muzzle on it. Any debt forgiven under the Public Service Loan Forgiveness Program is automatically tax free—no matter how much is erased.   

Did we mention PSLF is awesome?

Forgive student loans with a Quickness.

The PAYE—pay as you earn—program is the shortest income-driven forgiveness program. It takes 240 qualifying payments to forgive your student loans using PAYE.

PSLF is twice as fast. 120 qualifying payments and you are done!

Now that’s reasonable. Right?

Who can qualify?

Anyone who can work—that’s who! Some just have an easier path than others. But anyone willing to put on the can-do attitude, can make it happen. You just have to want it—or need it—bad enough.

A 25 percent chance
The cfpb—Consumer Financial Protection Bureau—estimates that 25 percent of workforce is employed by a public service employer.  

That’s approximately 38 million people. You could be one of them and not even realize it.

The other 75 percent
How much debt do you have? If it’s significant then perhaps a second job—or even a lateral move—makes sense.  

The PSLF program has the power to forgive all of your federal debt as well as all the accrued interest. That may be one helluva signing bonus. Right?

Now we are not saying to change jobs! Every situation is completely unique. We are just suggesting that if you are unemployed—or already looking to make a move—then public service organizations should be high on your list.  

Now the not-so-good news.

Like all things federal, PSLF can be confusing.
[That’s probably the understatement of the year—maybe I should restate.]

If PSLF were a toy, it would be a Rubik’s Cube.

[There it is.]

It does not happen by accident. To forgive your loans through the PSLF program, you will need to…

  1. Accumulate 120 Qualifying Payments.
  2. Protect those payments from being erased.
  3. Remain employed at a PSO until PSLF is granted.

Simple but certainly not easy. It can be done but you have to ‘keep your eye on the ball’ or hire someone who will.  

More to come.

We have much more say on this topic. We want to help make PSLF possible for more people. It’s a fantastic program. We are going to do our very best to solve the PSLF cube in the most clear and concise manner possible.

So please bookmark this thread and follow us on social media. New posts coming soon!

Need some help?

Interested in PSLF but not interested in hearing more details? No problem—that’s why we are here. Contact us for a little debt counseling. We can help you quickly determine your best loan forgiveness options.

Share this information!

Do you know anyone else that may need to know this information? Someone with student loan debt that works in public service?

Be a hero and share it with them. Give them some good news today. They will love you for it. Please share now.


Jack Moreh

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31 October 2016

Follow Debt Shop to Keep More Money.

Streams of light breaking through the dark clouds.

We live in a world drenched in marketing. It’s everywhere. Raining down on our senses. Stroking our ego. Plucking our gut strings. Punching that hot spot that keeps us up at night!  

It’s relentless.  

And it’s effective. We purchase what we need—and then some.  Over time it accumulates. Life happens and debt follows. That’s the pattern.

Let’s break it.

Which is why we are here—to act as a counterbalance to the marketers of the world. They introduce you to the debt. We show you the solution. Call it marketing in reverse.

We can be just as clear, concise, and compelling.

Specifically. You can escape your debt—student loans, credit cards, whatever. And we are going to tell you how.

Bookmark that.

Debt Shop takes complex financial matters and reduces them into simple terms so that you can determine your fastest path out of debt. Then we encourage you to take it!

So please bookmark and share this blog. We look forward to seeing you—and those you love—up and out of debt!


Debt Shop
Memphis, Tennessee

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21 October 2016

Is your Student Loan Payment being Wasted?

Debt Shop say what Puppy.gif

Are you paying the 15 year standard payment on your student debt—the one they automatically assigned to you when you graduated? Well that's cray-cray.  

Why?  Because it does not have a student loan forgiveness provision!

Fifteen years is a long time. The day may come you cannot afford your payment—assuming you can afford it now. You would have to switch to an income–driven repayment plan. And, unfortunately, you would be starting at loan–forgiveness payment number one.  

Ouch! That’s right.

Why not go ahead and do it now? You can still pay the same amount. Biggest difference being that each payment will count towards student loan forgiveness—just in case you ever need it.

Sweet love.

Don’t waste your payments any longer. Switch over to an income–driven plan as soon as possible. You can do that in one of three ways.

  1. You can calculate the payment and submit the documents yourself.
  2. You can contact your grumpy loan servicer (jk!).

The choice is yours. We just encourage you to act now or you probably never will. Agree?

Please share this information

We hope this information has been helpful to you. If you know anyone else with student loan debt please share it with them. You may turn out to be a hero!