ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Loan Forgiveness Trap

Updated on March 26, 2013

Read the Fine Print!

If you are considering signing a contract with the Federal Government to have your Student Loans forgiven...BEWARE!!!

You could be setting yourself up for one incredible nightmare! Especially if you are signing up with the National Health Service Corps (NHSC).

This is why: IF YOU DEFAULT ON THE CONTRACT YOU WILL OWE THE GOVT MORE THAN 3 TIMES THE ORIGINAL LOAN AMOUNT!

This sounds insane but it is the truth. Read the contract. This is not some flimsy "upgrade my software" agreement that you click on and forget about. This is hard-core legally binding. No lawyer will help you fight it. Attorney's will not pick a fight with an entity of the Feds unless they know they can win AND make a lot of money off the case. Neither can be done with the NHSC contract.

They will not allow you to file bankruptcy to get out of it and they will not let you return the original loan amount to get out of the contract. Believe me. I know people who have tried. Once you sign it, there's no getting out. They can even take away your license to practice if you fail to pay.

Think about it. What if you sign up for the 2-year contract and get laid off from your designated site before you complete the two years? They say they'll find you another site, but the reality is that the new site might be several states away. If your okay with that, then maybe it's not so bad. But if you already have a significant-other or wife and kids or some other kind of major family obligation, this can be devastating.

The bureaucratic barriers are thick and monstrous on this thing. It's a Federal contract, of course. Finding a sympathetic human ear to hear your grievances and actually make some changes to help you out are all but impossible.

If someone in your company's HR department approaches you with this, be very skeptical. The HR rep is not the one who will be on the hook for a quarter-to-half a million dollars when you go into default. They will sweep you under the rug. Most employers are under no obligation to make adjustments to your job description or find a new position for you. They will tell you what I'm telling you now: you should've read the contract!

If you work in Head Start be especially weary. The contract stipulates that you see your clients at your designated site, NOT at schools, residences, etc. Sounds insane that two mutually exclusive federal programs could be encouraged to interact in such a disastrous way, but it does happen. I have personally witnessed it. Federal bureaucrats write up these contracts without ever knowing how these programs actually operate in reality. They unwittingly create enormous financial and occupational traps for some people.

You don't have to take my word for it. Just READ THE CONTRACT and have an attorney look at it for you. It will be well worth it.

Comments

    0 of 8192 characters used
    Post Comment

    No comments yet.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)