Wednesday, September 28, 2022

Student Loan Forgiveness For Recovering Addicts

Navy Student Loan Repayment Program

How I Got $17,600 of Student Loans Forgiven (Teacher Loan Forgiveness)

The Navy Student Loan Repayment Program is one of several Navy enlistment education incentive programs designed to pay federally guaranteed student loans through three annual payments during a Sailor’s first three years of service.

You must sign up for this program when you enlist, and your recruiter must include this program in your recruiting paperwork.

You can learn more about this program here.

Working Hard At Financial Fidelity

Getting your finances back on track after a battle with addiction will not be an overnight process, and neither you nor your family should expect quick results. It might even become a source of stress in itself waiting for months, perhaps even years, to see things turning around could become frustrating, with nothing but trust and faith that the counselor who helped devise the financial plan knew what they were doing.

Reconstructing finances could be a day-to-day ordeal, with the results only becoming evident much further down the road. This is one reason why family members should remain connected to a counseling program even after the client is discharged from an addiction treatment program. Recovery is a lifelong process, both for the recovering addict and for the people in their life. Putting finances back together is part of that process.

The Annual Cost Of Substance Addiction

While it can be hard to measure the emotional impact of drug and alcohol addiction, the economic cost of addiction to the country adds up to $740 billion annually. This includes the costs in related crime, lost work productivity and health care, according to the National Institute of Drug Abuse.

COST OF ADDICTION IN THE U.S.

Substance

$26 billion

$78.5 billion

For people who have a substance use disorder, the costs can make an immediate and dramatic impact on their lives. Using alcohol as an example, if you drank heavily every night at an average cost of $3 a drink, youd spend more than $4,300 a year. Thats the cost of a used car, and after five years of this behavior, it can be the cost of a new car. The use of other illicit drugs could cost double that, with a gram of cocaine averaging $150 a gram in the U.S., according to the 2018 National Drug Assessment. Heroin is the most expensive at more than $900 a gram. Some drug-related habits can hit more than $10,000 a year.

COST OF DRINKING AT $3 A DRINK

Amount of Drinks per Week Cost Per Week

4,368

Read Also: What Percentage Of Drug Addicts Relapse

Concern That Much Debt Won’t Be Repaid Anyway

One of the arguments for forgiving student loans is that millions of borrowers will never pay off their debt anyway.

According to a rough estimate by higher education expert Mark Kantrowitz, just about half of federal student loan borrowers, or 20 million people, were in repayment prior to the pandemic. A quarter or more than 10 million people were in delinquency or default. Many others had applied for temporary relief for struggling borrowers, including deferments or forbearances.

These grim figures led to comparisons to the 2008 mortgage crisis.

In the meantime, student loan borrowers face a host of consequences from having tens of thousands of dollars on their personal balance sheets, including difficulty buying a house and starting a business.

John R Justice Student Loan Repayment Program

lender student loan interest rate

The John R. Justice Student Loan Repayment Program provides loan repayment assistance for state public defenders and state prosecutors who agree to remain employed as public defenders and prosecutors for at least three years.

This program provides repayment benefits up to $10,000 in any calendar year or an aggregate total of $60,000 per attorney.

You can learn more about this program here.

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What This Means For Your Student Loans

If student loan servicers dont send student loan bills to student loan borrowers, this could imply that student loan borrowers dont have to make federal student loan payments starting on September 1. If true, this could be welcomed news for student loan borrowers who have faced months of uncertainty regarding the future of student loans. Biden has three important deadlines for student loans, and he has promised a by late August . The White House has denied that Biden decided to cancel $10,000 of student loans, stating the president hasnt yet decided. Progressive Democrats want Biden to reconsider $50,000 of student loan forgiveness. However, Republicans argue that Biden has canceled $400 billion of student loans and that extending the student loan payment and canceling student loans will only fuel monster inflation. Biden hasnt formally announced whether he will cancel student loans or extend the student loan payment pause beyond August 31. While Biden could provide more student loan relief, your safest bet is to prepare for the restart of student loan payments on September 1. Here are some popular ways to save money on your student loans:

Scholarships For Recovering Addicts

Scholarships for recovering addicts help students maintain an addiction-free life while encouraging them to pursue continuing education opportunities.

Alcohol and drug abuse is a widely identified problem on college campuses. Several carefully conducted community initiatives aimed at addictions among college-age persons effectively reduce negative consequences.

However, many initiatives target active substance abuse problems on campus, particularly binge drinking, scholarships specifically aid students in recovering from alcohol or drug addiction. Fortunately, students recovering from various addictions have grants to help them succeed in college.

Scholarships for Recovering Addicts Returning to College in Recovery

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Talk With Other Students In Recovery

Current degree-seekers can help provide the framework for community building and social support. They can provide academic support and attend substance-free activities with students. In a campus recovery program, college-goers lean on each other to learn other ways to socialize and cope with stress. Learners support each other as they work to recover from excessive alcohol and other drug use.

Students should:

  • Find other college-goers intentional about their own recovery efforts.
  • Meet degree-seekers ahead of time through prospective campus visits.
  • Meet CRP and CRC group advisors and counseling services personnel in advance.
  • Learn about proactive steps the group takes to implement sobriety.

Students should not:

  • Feel forced to cooperate in on-campus programming by parents or friends.
  • Go to college without a solid support plan in place.
  • Attend college without knowing where to get help.

Army College Loan Repayment Program

Student loan deduction in sage 50

The Army College Loan Repayment program is the most generous of all the branches, but it does have some big “catches” that you need to be aware of.

First, this program will forgive up to $65,000 of your student loan debt for highly qualified individuals who enlist in one of the Armys critical military occupational specialties .

However, to qualify, you must have this written into your enlistment contract, AND you must give up your Post 9/11 GI Bill. So, if you’re thinking about going back to college, this might not be a good deal.

You can learn more about this program here.

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In Court Filing Biden Administration Cites Hea Compromise Authority To Support Student Loan Forgiveness Initiative

In a court filing this week, the Biden administration suggested that it agrees that the HEA in fact does confer broad authority to cancel student debt at least to a certain extent.

The filing was in regards to Sweet v. DeVos a class action lawsuit brought by student loan borrowers over stalled applications for Borrower Defense to Repayment. Borrower Defense to Repayment is a federal student loan forgiveness program for borrowers who were misled or defrauded by their school. Last month, attorneys for the Education Department and the class of student loan borrowers announced a proposed joint settlement agreement for the case that would cancel $6 billion in federal student loans for over 264,000 borrowers who attended certain schools.

In its filing this week, which the Department of Education submitted in opposition to a motion by several impacted schools to intervene, the Biden administration suggested that the $6 billion in student loan cancellation that the parties proposed under the settlement agreement would not actually be implemented via Borrower Defense to Repayment, but rather through the HEAs compromise authority. The Education Department pointed to the Secretary of Educations considerable discretion under the HEA to compromise and settle claims related to federal student loan programs.

The court has not yet ruled on the Departments arguments.

Tax Consequences From Student Loan Forgiveness

It’s important to note that while these “secret” student loan forgiveness options could be helpful to some borrowers, for others they may result in tax consequences .

However, President Biden recently signed the American Recovery Act, which makes all loan discharge and student loan forgiveness, regardless of loan type or program, tax free. This is in effect through December 31, 2025. State taxes may vary, so the information below may still apply for your state tax return.

What happens is the forgiven amount of the student loan is added to the borrowers taxable income for the year. So, if you had $50,000 in student loans forgiven under these repayment plans, it is considered income. If you made $35,000 working, your total income for the year would now be $85,000. The result? A higher tax bill.

However, for many borrowers, this tax bill is much more manageable than the original debt itself, so the plan makes sense. Using a very simple example, here is what the tax bill will look like in both scenarios:

As you can see, with these repayment plans, you’ll owe an additional $11,377 in Federal Income Tax in the year you do it. However, that’s cheaper than paying the original $50,000 plus interest. Furthermore, there are options to work out a repayment plan with the IRS if you need to, which may also be helpful in your situation.

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Air Force College Loan Repayment Program

The main Air Force College Loan Repayment program is paused in 2018 . This program allowed you to get up to $10,000 in student loan debt paid off in 3 years.

However, the Air Force JAG student loan repayment program is still active. You can receive up to $65,000 in student loan forgiveness if you go into JAG in the Air Force.

You can learn more about this program here.

Learning Financial Skills In Treatment

Student Loan Forgiveness for Healthcare Workers

When a person enters a treatment facility for addiction treatment, part of the rehabilitation process involves extensive work with therapists, coaches, and other professionals experienced with life skill development. The work will cover things like job competencies, physical health and nutrition, relationship planning, and financial organization seemingly simple for a person without a drug problem, but for a person in recovery, necessary steps to reconstruct the various aspects of life that have been upended by addiction.

Financial commitments dont stop during treatment, and getting treatment is a financial obligation by itself. To start chipping away at the iceberg, a client will be guided through the process of making a list of every outstanding debt. This requires full trust and cooperation between the client and the counselor going into the gritty details of how the addiction ruined the clients life in many ways can be embarrassing, but there will be no judgment or condemnation from the counselor. This should encourage the client to honestly disclose all major recurring expenses, such as monthly mortgage or rent, home equity loan, line of credit, car loan or lease payments, insurance costs, credit cards that may have been maxed out because of the addiction, utilities, cellphone bills, and student loans, as applicable. Incidental expenses, such as food, clothes, and expenses for children, will also have to be factored in.

Recommended Reading: Ellen O’brien Gaiser Addiction Center

Choose The Right School

Individuals need to choose the best school to support their collegiate recovery. The school they choose must offer all the right resources for students in recovery. College counseling provides the resources students need to focus on their education and their sobriety.

Learners and their parents should meet counseling services and student support team staff members. Prospective students and parents can review campus substance use policies. College-goers should consider whether distance from home will affect their recovery efforts.

Substance Abuse And Mental Health Services Administration

One federal grant for those recovering from addiction is the Substance Abuse and Mental Health Service Administration program. Through SAMHSA, block grants are provided to state addiction treatment providers to benefit those in need. Typically, receiving a SAMHSA grant requires meeting specific income requirements or participating in a qualified treatment program through the courts.

To see eligibility information and complete the application process, visit the SAMHSA website.

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What Other Policy Changes Should I Know About

The Department of Education said in its statement that it will continue to roll out and update its policies in the coming months as it attempts to get the PSLF program back on track.

Correction, Jan. 25: This article previously stated that private loans would be eligible for student loan forgiveness under the new waiver. That was incorrect. In addition to Direct Loans, only FFEL loans — which are federally backed, but often issued by private lenders — Perkins Loans and other federal loans may qualify for the PSLF waiver.

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How Do I Consolidate My Non

FORGIVENESS: Feds Modify Student Loan Forgiveness Rules

You can consolidate qualifying federal student loans into a Direct Loan online at the Federal Student Aid website — you can find the application for consolidation here. This will combine your existing federal loans into one Direct Loan with one interest rate and one monthly payment. By consolidating into one Direct Loan and then applying for the expanded PSLF waiver, your past payments can now count toward loan forgiveness, as long as you are in a qualifying public service job.

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A Growing Sense The System Is Broken

With the cost of attending higher education ballooning and household wages sputtering over the last few decades, more families have had to turn to loans to cover their children’s college bills. Average student loan balances at graduation have almost tripled since 1980, from around $12,000 to more than $30,000 today.

The country’s outstanding education debt balance now exceeds $1.7 trillion and poses a larger burden to households than credit card or auto debt.

Millions of people enrolled in programs that supposedly lead to debt forgiveness after a certain period of time haven’t received promised help. That includes borrowers in income-driven repayment plans and the popular public service loan forgiveness program, who have been stuck continuing to pay after being rejected for the relief, often for technical and confusing reasons.

The companies that service federal student loans also have been accused of giving borrowers wrong and incomplete information.

“There have been decades of mismanagement, abusive practices and general incompetence, which has resulted in millions of borrowers missing out on many of the vital programs and benefits afforded under the law,” Yu said.

Financial Aid For Drug Rehab

On average, drug rehab costs range from a few to several hundred dollars for a 30-day detox, and between $5,000 and $80,000 for residential recovery treatment. Many individuals in or contemplating recovery may see this as a deterrent to getting the help they need. However, several resources exist that offer financial assistance for drug rehab and associated programs.

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Sud Treatment And Recovery Loan Repayment Program

This week, the Health Resources and Services Administration announced a new Substance Use Disorder Treatment and Recovery Loan Repayment Program , open now through July 22, 2021, at 7:30 pm ET. The program will repay educational loans for eligible staff up to $250,000 for six years of work. Join HRSAs STAR LRP application webinar on Monday, June 14 from 2-3:30 pm ET to learn more.

Get involved.

The content on this site is intended solely to inform and educate medical professionals. This site shall not be used for medical advice and is not a substitute for the advice or treatment of a qualified medical professional.

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When Can Student Loan Holders Expect Changes

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The short answer is that the timeline is still up in the air. The budget for a $1.9 trillion COVID-19 relief package, passed by the Senate on Feb. 5, didn’t even mention canceling student debt.

Biden has promised to forgive student debt, though lawmakers now say they may not propose legislation until late summer or early fall. Even then, it’s still unclear how much relief borrowers will receive.

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Benefits Of The Nhsc Sud Workforce Lrp

Eligible clinicians may receive up to $75,000 in student loan repayment in exchange for a three-year commitment to provide substance use disorder treatment services at NHSC-approved sites.

  • ServiceYou have an opportunity to increase access to primary care services to communities in need.
  • Flexible Service OptionsYou have a choice between three years of full-time or part-time service at an NHSC-approved SUD service site.Note: If you serve in a private practice, you are not eligible to practice half-time.
  • Loan RepaymentYou will receive funds to repay your outstanding, qualifying, educational loans.

Workers At Why Not Prosper In Germantown Are Eligible For The Program

Hundreds of addiction outreach workers in Philly have a chance to get a break on student loans. Through a state program, they can apply for up to $100,000 in forgiveness if they commit to working against the opioid epidemic for another two and a half years.

The Pennsylvania Health Department is giving out $5 million from a federal grant. Its purpose: to incentivize people to keep working in addiction treatment and hopefully make a dent in overdose deaths.

No surprise, but working in addiction treatment can be a challenge, recovery house owner Rev. Michelle Simmons said. For one thing, many people in the field are in recovery themselves. But if they want to advance beyond base-level peer counseling gigs, extra education is key.

You cant just have your recovery and get a job, said Simmons, founder of Germantowns Why Not Prosper, where staff is eligible for the program.

In order to move up the ranks they want you to be educated. Youre not going to be able to be an administrator or a director without a degree.

Roughly 95 people will be chosen for the state grant across the 30 counties most impacted by the addiction epidemic, including Philadelphia.

Before you apply for student loan repayment, youve got to make sure youre eligible. Applicants should have:

  • Two years of experience treating addiction
  • Existing employment in one of the licensed treatment practice sites
  • The commitment to stay there until September 2022, at least

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