You’ve probably noticed advertisements for government debt relief programs and experienced a healthy dose of skepticism about their legitimacy. After all, how can the government help you with debt? If you’re wondering what government debt relief programs do, you’re not alone. The good news is there are legitimate government debt relief programs available — for specific purposes.
What is this Program?
A government debt relief program uses government funds to help U.S. residents pay off specific kinds of debt. For example, student loan borrowers, small business owners, and homeowners may find government debt relief programs to help pay off all or part of their loans.
These programs, however, typically require a lengthy application and they’re not always easy to find. Moreover, when it comes to consumer debt, the government has little to offer beyond advice. You’ll find consumer debt relief at the Freedom Debt Relief web site. Government debt relief tends to focus on debts owed to the government.
IRS Fresh Start Program
The IRS Fresh Start Program works with taxpayers who are behind in taxes. For example, as part of the IRS Fresh Start Program, the Installment Agreement helps taxpayers who owe multiple years’ worth of taxes. Another option for paying back tax debt is the IRS Offer in Compromise. However, this Offer in Compromise option requires the debtor to disclose all their finances to the IRS — something many people are hesitant to do.
Public Service Loan Forgiveness
Nurses and emergency medical technicians who work for public hospitals and firefighters and first responders may be eligible for the Public Service Loan Forgiveness program from the government. This program helps encourage individuals to choose these difficult — but rewarding — careers. There are criteria that the applicant must meet, but it’s worth a try if you’re in one of these careers and carrying student loan debt.
Student Loan Disability Discharge
If you have student loans and are disabled on a long-term basis, the Total and Permanent Disability (TPD) Discharge could help discharge the entirety of your student loan. This program has precise conditions that must be met, but it’s worth looking into if you have a disability. For example, here are some criteria they look for:
- Submission of a certification from a licensed U.S. doctor of medicine or osteopathy stating your total and permanently disabled.
- The doctor must certify that you cannot engage in any gainful activities due to physical or mental impairment.
- Your disability has lasted for more than 60 months or can be expected to last for 60 months into the future.
The Programs for Credit Card Debt
Numbers from the Federal Reserve show that households in the U.S. carry a total of $966 billion in credit cards. A concerning number — 75% — pay only the minimum amount due every month. That said, the government does not offer any these programs for credit card borrowers.
No government program helps repay, discharge, or minimize credit card debt for any individual. What’s more, government debt relief programs have very specific hoops to jump through, and not everyone qualifies or meets criteria. Looking to government debt relief programs to solve money woes might help part of the problem, but most people need more help than government debt relief programs can provide.
Where to Find Help
There’s no magic bullet from the government that will help wipe away all of your debt, even with government debt relief programs. Trained credit counselors at Freedom Debt Relief can help make sense of your debt relief options. Contact us for a debt consultation today.