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The Student Loan Forgiveness program President Joe Biden approved last year was one of the most demanded decisions from all the college community. For many generations, tens of thousands of people graduate college with a massive debt every year that most of them pay over decades. In many cases, college graduates even declare bankruptcy in order to buy some time from that responsibility. Biden's landmark decision to declare student loan forgiveness helped the ones in the most dire situations. But what about those who are part of different programs and weren't completely helped by the new program? Specifically, we will talk about the forgiveness and repayment options of the Aidvantage Student Loans program.
What is Aidvantage Student Loans?
First of all, Aidvantage is a for-profit company that was hired by the Department of Education in order to take over collecting payments for federal student loans from Navient. It is considered a unit of Maximus Education, LLC that is not owned by Navient. As one of seven federal student loan servicers, Aidvantage was contracted by the department with the ability to manages its loan portfolio. This company also includes responsibilities such as helping you enroll in repayment plans. Postponing payments with deferments and forbearances and they track your progress towards an income-driven repayment plan forgiveness.
So yes, Aidvantage is included in the loan forgiveness programs. Although, it is only eligible for the following student loan forgiveness programs. First, there is the income-driven repayment forgiveness that extends your repayment term to 20 or 25 years. There is also the public service loan forgiveness, which clears the balance owed on Direct Loans if you are a full-time government employee or work for a non-profit entity. The Teacher Loan Forgiveness, which allows teachers who work in Title I schools to eliminate up to $18,500 of federal student loan debt after five years. The Total and Permanent Disability Discharge is pretty self explanatory, a doctor needs to determine you can't physically work. Last but not least, the Closed School Discharge wipes out balances for student loanees whose schools closed.