Get Your Student Loan Debt Erased by Asking ChatGPT Questions – Yahoo Finance

The Supreme Court’s rebuke of President Joe Biden’s student loan forgiveness program, in a 6-3 decision on June 30th — was a financial blow to millions of American borrowers.
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And now, some of them are turning to ChatGPT to get some answers on how to get help.
However, experts believe this is recent enough news and people have specific enough situations that borrowers won’t get adequate enough answers.
“I think a student loan counselor is much more likely to give a better answer since they are already “trained” to do this and the model is not,” said Phil Siegel, founder of CAPTRS.
“If you just ask it about student loans it might give you advice about the pause during the pandemic, it might have information about the administration’s efforts to cancel debt but it certainly won’t have the latest rules and proposals of the Department of Education, unless you tell it that in the prompt,” said Siegel. “When I search, I don’t find specific enough information to prompt. But a counselor will have that information. It’s really as simple as that. Because Chatgpt is short information on the state of play in student loans and on your personal situation you will have to provide it with all that extra training to get any hope for a good answer.”
GOBankingRates asked the AI tool some questions-from basic ones to more intricate ones, notably about the so-called “borrower defense to repayment,” which is a legal ground for discharging federal direct loans if your school engaged in certain misconduct.
Here are ChatGPT’s responses:
Prompt: How can I erase my student loan debt?
Subsequent prompt: Can you summarize this answer?
Loan Forgiveness Programs: You may qualify for forgiveness if you work in public service, non-profit organizations, or certain teaching roles.
Income-Driven Repayment (IDR) Forgiveness: If you have federal student loans and are on an income-driven repayment plan, you may be eligible for forgiveness after a certain number of years of payments.
State-Based Loan Forgiveness Programs: Some states offer loan forgiveness or assistance programs for residents in specific fields or areas with professional shortages.
Military Service: Joining the military may offer student loan repayment assistance or forgiveness.
Total and Permanent Disability Discharge: If you are permanently disabled, you may qualify for a discharge of federal student loans.
Bankruptcy (Rare): In some cases, you may be able to discharge student loan debt through bankruptcy if you can demonstrate undue hardship.
Refinancing: While not debt erasure, refinancing can help lower interest rates and reduce overall loan costs. Be cautious with federal loans, as refinancing makes you ineligible for federal forgiveness programs.
Remember to check specific requirements for each option and consult with a loan servicer or financial advisor to understand the best approach for your situation. Keep abreast of any changes to loan forgiveness programs and policies.
Prompt: Are there any other options?
Here is a summary of additional options to manage or reduce student loan debt:
Deferment or Forbearance: Temporarily stop or reduce loan payments during financial hardship or other qualifying situations.
Repayment Plans: Federal loans offer various plans adjusting payments based on income and loan amount.
Employer Assistance: Some employers offer student loan repayment benefits.
Loan Consolidation: Combine multiple loans into one to potentially lower monthly payments.
Income-Contingent Repayment (ICR): Set payments based on discretionary income and get forgiveness after 25 years.
Autopay Discounts: Some servicers provide interest rate reductions for enrolling in automatic payments.
Loan Repayment Assistance Programs (LRAPs): Schools and organizations offer assistance for specific career paths or communities.
Keep in mind that eligibility and availability may vary depending on loan types and policies. Contact your loan servicer or a financial advisor to explore the best options for you.
Prompt: What can I do the use the borrowers’ defense to erase my student debt?
Subsequent prompt: Can you summarize this answer?
Gather evidence of fraud or deceptive practices by your school.
Check if you meet the eligibility criteria for the Borrower’s Defense program.
Decide on your repayment status (in repayment, default, or forbearance/deferment).
Complete the Borrower’s Defense to Repayment application form.
Submit the application along with supporting documents to the U.S. Department of Education.
Await the decision, which may take several months.
If approved, your federal student loans may be forgiven, and you could receive a refund of past payments.
Remember that the Borrower’s Defense program is not guaranteed, and the application process may change, so it’s essential to refer to official sources for the most current information.
Prompt: How can I know if I can use the Borrower defense and whether my school engaged in certain misconduct related to the making of a federal loan or the educational services it provided which caused you harm warranting a full discharge of your applicable federal Direct Loans?
Subsequent prompt: Can you summarize this answer?
Research the Borrower Defense program and its eligibility criteria.
Identify potential misconduct by your school that may qualify for loan forgiveness.
Gather evidence to support your claim of misconduct.
Contact your loan servicer to inquire about the Borrower Defense program and the application process.
Submit a Borrower Defense application with the U.S. Department of Education, providing details and evidence of the misconduct.
Await a decision from the Department of Education on whether you qualify for loan forgiveness.
Remember to check the official Federal Student Aid website or contact your loan servicer for the most current and accurate information.
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This article originally appeared on Get Your Student Loan Debt Erased by Asking ChatGPT Questions