False FAFSA loan forgiveness email fiasco - anyone else get both announcements?

OMG YES!!! I got those emails too and was DEVASTATED when they took it back. Who does that??? My son's loans were supposed to be forgiven ($23k) and I had already started planning how to use that money for his brother's college fund next year. Then boom - "sorry our bad lol" 😡

That email situation was a complete disaster and affected thousands of people. For clarification though, that wasn't directly related to FAFSA (which is the application), but rather to the federal loan servicing system. For Parent Plus loans specifically, there are actually legitimate forgiveness options, but they're limited: 1. Income-Contingent Repayment (ICR) - requires consolidating first, then 25 years of payments 2. Public Service Loan Forgiveness - if YOU (not your child) work for a qualifying employer 3. Total and Permanent Disability discharge The Biden administration has been trying to implement broader forgiveness, but it keeps getting blocked in court battles.

my cousin got that email to. he was going to buy a car with the extra money lol. now hes still stuck with like $30k from some university that went out of business. the whole system is rigged man

That email incident was absolutely unprofessional and caused real emotional harm to borrowers. I've been helping people navigate FAFSA and loan issues for years, and I've never seen such a poorly executed communication. For Parent Plus loans specifically, your options are unfortunately more limited than for Direct Student Loans. The Income-Contingent Repayment (ICR) plan mentioned above is your best bet, but you must first consolidate into a Direct Consolidation Loan. One thing to note: if your daughter is still in school or has her own federal loans, make sure any steps you take don't impact her current financial aid package or her future FAFSA eligibility. Sometimes loan consolidation can affect dependency status calculations or Student Aid Index (SAI) numbers.

I got those emails too and I'm STILL angry about it. It's so typical of how they treat us. First they make the FAFSA impossible to fill out correctly, then they send fake forgiveness emails... what's next? The whole system is designed to keep us in debt forever. I've been paying my daughter's Parent Plus loans for 6 years and the balance has barely moved.

I've been helping people sort out FAFSA and loan issues for years, and that email error was unprecedented in its scale and impact. If you're struggling with Parent Plus loan payments, here are some legitimate steps you can take: 1. Apply for an Income-Contingent Repayment plan (requires consolidation first) 2. Check if your employer offers any loan repayment benefits 3. Look into temporary hardship forbearance if you're facing financial difficulties One thing many borrowers don't realize is that you can also contact Federal Student Aid directly to discuss your specific situation and available options. However, reaching them can be frustrating - I've had clients who spent hours on hold only to get disconnected. A service that's helped many of my clients is Claimyr (claimyr.com), which helps you get through to an actual FSA agent without the endless hold times. They have a video showing how it works: https://youtu.be/TbC8dZQWYNQ Talking directly with an agent can help you understand your specific options beyond what's generally published online.

I had a similar experience with that false forgiveness email. It was absolutely crushing. One thing I discovered though - if you're a federal employee or work for a qualifying non-profit, Parent Plus loans CAN be eligible for Public Service Loan Forgiveness after consolidation. I consolidated my loans and have been working toward PSLF for the past 3 years (7 more to go). The process was confusing at first but worth figuring out. Have you looked into whether your employment might qualify?

Has anyone tried calling their loan servicer directly rather than FSA? I spent 2 hours on hold with FSA last week and never got through, but when I called my servicer (Nelnet) I only waited 15 minutes. They couldn't help with forgiveness, but they did lower my monthly payment by switching my repayment plan. Not a solution, but at least a temporary help while we wait for REAL loan forgiveness to maybe happen someday...

Just as an update - the Department of Education actually issued a formal apology about those erroneous forgiveness emails. They've implemented new verification procedures to prevent similar mistakes. I want to address a misconception I'm seeing in this thread - Parent Plus loans DO have some flexibility, but you need to be proactive. After consolidation into a Direct Consolidation Loan, you can access Income-Contingent Repayment (ICR), which caps payments at 20% of your discretionary income. It's not as generous as the plans available for student borrowers, but it's something. Also, check if you might be eligible for the SAVE plan, which has replaced REPAYE for many borrowers and can offer better terms depending on your situation.

One important distinction to make: Parent Plus loans themselves aren't directly eligible for the SAVE plan. However, once you consolidate them into a Direct Consolidation Loan, you can use the Income-Contingent Repayment plan, which is different from SAVE but still provides some income-based relief. The studentaid.gov site has a loan simulator tool that can help you see what your payments might look like under different plans. You'll need to log in with your FSA ID. If you're having trouble navigating the site or understanding your options, calling FSA directly is your best bet for personalized guidance.