Key 2 Debt Free was founded in December 2017 by Rachael Katz, a single mother of two sons, who had just graduated with her MBA in Finance, had over $100k of student loans, a looming $1k/mo payment that would be due soon, and no steady income or job. With no idea of what to do with this debt or how she was going to successfully manage and pay it off, Rachael did what she always does when she’s looking for the answer…..she PRAYED! She prayed for the SOLUTION that would help her with this student loan debt dilemma; and by the Grace of God, she was introduced to the federal student loan relief programs at a conference for Nursing school students and graduates.
Rachael was hired to canvas and collect information from attendees with student loans who were interested in payment relief plans and public service loan forgiveness programs. Not being a nurse and having no plans to go into a medical or public service career; Rachael didn’t believe any of these programs would work for her student loans, but decided to inquire a little more with the event organizer after he spoke at the event. Rachael was educated on the different plans and programs available to all student loan borrowers who have received loans through FAFSA (Free Application For Student Aid), and was shown how to qualify and apply for the payment relief plan and forgiveness program that was best for her.
Rachael has turned this knowledge into an educational and advisory business that has helped thousands of student loan borrowers get relief and take the key to a debt free and financially secure future.
How do I get my student loans forgiven?
Student Loan Forgiveness is not a reduction in debt principal, it is like a payment clock. Whatever amount of debt is left over after the clock runs out is completely forgiven. So in a nutshell, it is our job to leave as much debt left over to be forgiven as humanly possible.This is all depending on the amount of debt, of course. Someone who only owes $10,000 for instance might not ever see any forgiveness.
Short answer: It won't affect your score
1) If a consolidation is necessary to change your loan types or whatever the reason, what is essentially happening is that we are moving debt around. We are not adding or taking it away therefore your credit will not be affected
2) If we are changing your monthly payment, your credit still will not be affected. The reason is that no matter what the payment goes to (even $0), you will still be current and up to date, ensuring your credit score will remain intact.
No, student loan forgiveness is not taxable income at the federal level from December 31, 2020 to January 1, 2026. However, some states may tax forgiven student loans.
Explanation:
● The American Rescue Plan Act of 2021 temporarily excludes forgiven student loans from gross income.
● This means that borrowers who receive student loan forgiveness during this period will not have to pay federal income taxes on the forgiven amount.
● However, some states may still tax the forgiven amount.
● You can consult a tax professional for more information.
What about other forgiveness programs?
● Student loan amounts forgiven under the Public Service Loan Forgiveness (PSLF) program are not considered income for tax purposes.
● The taxability of discharged student loan debt due to borrower defense may vary.
Yes, interest continues to accrue on your student loans even if you are not currently making payments, unless you have a specific type of subsidized federal loan where the government pays the interest while you are in school; in most cases, interest accrues daily on your student loan balance from the moment the loan is disbursed until it is paid off in full.
Key points about student loan interest:
Accrual while in school:
For unsubsidized federal loans and most private loans, interest accrues even while you are still enrolled in school.
Subsidized loans:
For subsidized federal loans, the government pays the interest while you are enrolled in school.
Deferment and forbearance:
During periods of deferment or forbearance, interest typically continues to accrue on most loans, although the terms may vary depending on the loan type and lender.
Capitalization:
If interest accrues while you are not making payments, it can be "capitalized" and added to your principal loan balance when you start making payments again.
Yes, PSLF forgiveness is available to any borrower who has been working for 30+ hours a week for a qualifying employer for 120 months (10 years). This program requires borrowers to have the correct loan type, be enrolled in an income driven repayment, and have HR complete the PSLF form to verify borrower employment.
Note: If the qualifying and enrollment process is not done correctly a borrower can be denied; without any explanation to why.
We charge 30% of the amount we save you in the first year of working with us. This fee covers all of our services for the period of one year from the date you decide to work with us. This includes all document preparation, a custom student loan plan, all questions answered, expert advice, as well as up to date changes in the laws that might affect you and your plan.
The yearly recertification fee is $250 - 450, a significantly reduced fee for existing clients who prefer “peace of mind” knowing they will continue receiving monthly payment relief and loan forgiveness credit.
Absolutely not! Any money paid to K2DF is a fee in exchange for our services and it will not go toward your student loans. You will still be responsible to pay your servicer each month if you have a payment owed.
Side note: if you are investigating companies, stay far away from any company that promises to pay your loan for you, that is not only illegal but a safe way to wind up in serious hot water.
Yes you could do a consolidation yourself at StudentLoans.gov. However - do you know when to do consolidation? Do you know when doing a consolidation could hurt you? Do you know the dangers and pitfalls in the application itself?
Yes, you can even do an Income-Driven Request on your own. But do you know the best repayment plan, the right loan servicer, and different ways to show income to ensure you get the lowest payment and the shortest forgiveness period?
What happens if you make a mistake? Or even worse, if you do everything correctly and the servicing companies make a mistake (this happens about 30% of the time). Do you know what to do then? Are you going to keep up with all the changes and be on time to recertify every year (50% of people who put themselves in these programs fall out for not recertifying, these are real statistics you can look it up!)
The bottom line is that you can do this yourself. You can also do your own taxes, your own electrical work, and represent yourself in a court of law. However in these scenarios, you might want to seek professional help. Let us ask you - what could you have to gain in having a free consultation with one of our student loan experts?
If your student debt is private; then yes, it’s recommended you pay those loans first; since there are no relief plans available; and often have high interest rates. K2DF consultants advise on strategies that will expedite payoff of private debts.
Federal student loans have payment relief and forgiveness options available to qualifying borrowers. To determine eligibility schedule a consultation with a K2DF consultant to find which relief options are available to you.
Yes, in our opinion, Federal Student Debt is good, and Private Student Debt is bad. Simply because private debt is so much more difficult to deal with.
Tip:
Never EVER refinance and turn a Federal Student Loan into a Private Student Loan!!! You will no longer be eligible for any payment relief or forgiveness programs. Before you do this, set up a consultation with K2DF to find out how to qualify for relief.
Key 2 Debt Free is a financial education and consulting company that provides services for student loan and consumer debt relief, credit improvement, income and asset protection, wealth building strategies and family legacy creation.
We design custom relief plans for individuals with student loans and consumer debt. Educate families and businesses about income protection and asset leveraging. Our network of vetted financial professionals have a solution to every financial concern. Whether you're looking for proven debt relief and elimination strategies, financial wellbeing tips or asset protection and wealth building tools; Key 2 Debt Free is here to help you reach the right professional for your needs.
Medical
Physicians, Dentists & Dental Specialists, Veterinarians, Acupuncturist & Naturopathy, Chiropractors, Nurse & Nurse Practitioners, Occupational Therapists, Optometrists, Pharmacists, Physician Assistants/Associates, Psychologists, Speech Language Pathologists.
Non-Medical
Engineers, Financial Advisors, Lawyers, Corporate Employees/MBAs, Teachers, Public Servants, Self-Employed, Independent Contractors, Business Owners, Entrepreneurs.
Parents & Retirees
Parent PLUS Borrowers, Retired Borrowers
Our experienced representatives help put your financial situation in perspective, so you can prioritize your monetary goals and create a more secure financial future for yourself and your loved ones.