F.A.Q.

Student loans are confusing. LoanBuddy is simple. Scroll through to see answers to our most Frequently Asked Questions.

 

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Get To Know LoanBuddy

LoanBuddy is an online tool that will help you understand your loan repayment options. We give you a full picture of your debt and recommend smart repayment and forgiveness options to save you time and peace of mind.

When you start the process with LoanBuddy, we’ll ask you for all the information we need to help determine the lowest-cost repayment plan for you. This initial report is free to you. If you’re comfortable taking matters into your own hands, armed with this information, then we wish you all the best and thank you for utilizing our service. But if you need more guidance, we offer premium features as well as access to a database of financial advisors.

No. We are not associated with the Department of Education or your loan servicer. We don’t work with them, nor can we speak to them on your behalf. Only you, the borrower, can advocate for yourself, but through one of our three plan options, we will be as involved as you need us to be, by empowering you with tools and services from behind the scenes.

LoanBuddy is what we call a “freemium” product. We’ll tell you the lowest cost repayment plan option for you, based on the information you provide, completely free. Then you can take that knowledge and change your repayment plan on your own (on our Free plan), or with document services, additional tracking tools, and our life event calculator (on our premium plans). You can access these premium services for one year for $99, or for the entire lifetime of your loan for just $149.

Getting Started

In order to provide you with the most accurate, best-for-you recommendations, we will require you to share basic identifying information such as your full name, address, phone number, Social Security number, loan information, and income information. We may also need information about your family. Each question we ask is necessary to calculate the optimum repayment plan for you, and is also required to generate the paperwork you’ll need to send to your loan servicer, should you choose to purchase one of our premium plans.

Be assured that all information is kept secure with bank-level encryption technology.

No, LoanBuddy does not require a credit check. However, if you choose to refinance your loans, our lender partners may do either a soft pull or hard credit check, depending on your application requirements.

Student Loan Advice

LoanBuddy is a do-it-yourself product and, as such, we are unable to offer one-on-one consultations. However, LoanBuddy is also a trusted tool for many financial advisors who see individuals with student loan debt all the time. You can use our “Find an Advisor” tool to connect with a financial advisor who has experience in student loan debt, and he or she can help you create a plan of action if you have a tricky situation or even if you just feel like you need more advice.

Tax Advice

Different types of student loan forgiveness programs are treated in different ways for tax purposes.

Public Service Loan Forgiveness is tax-free student loan forgiveness. Death and Disability discharge is also tax free.

If you receive loan forgiveness as the result of your repayment plan ending, or if you receive any other type of student loan cancellation, the amount forgiven is considered taxable income.

However, that doesn’t necessarily mean you pay taxes on it. Tax law is complex, and many borrowers with student loan debt forgiveness will likely qualify for insolvency, which could partially or totally eliminate the amount of taxes you may owe.

If you’re not comfortable navigating this yourself, consider seeking the advice of a licensed tax professional to prepare your tax return.

How you choose to file your tax return can have a dramatic affect on your student loan payment depending on what type of repayment plan you’re on. However, there is more to the equation than just what impacts your student loans. How you file your taxes can also change the amount of taxes your owe, which may or may not make up for the change to your student loan payment.

Your best option is to consult the advice of a licensed tax professional who can walk you through the implications of your tax filing status. You can then take that information and review how each situation would impact your student loan repayment.

Your 1098-E shows how much you paid in student loan interest in the previous year. You will want to submit that information on your taxes to potentially qualify for the student loan interest deduction.

Other

Here at LoanBuddy, we put the highest priority on keeping your information secure. We use bank-level security protocols, strong passwords, and other tools to ensure that your information is safe.

Only if you want us to! What this means is that we will only share your loan data and other information with third-party lenders if you want to refinance and indicate this by manually selecting “Refinance My Loans” as an option on your personal dashboard. Otherwise, we don’t share any personal information with third parties.

A strong password is a mix of upper case, lower case, numbers, and symbols, and, to increase security, it should be a password unique to LoanBuddy, and not used anywhere else online. Remember, that while we do protect your data within our system, if someone unauthorized has your password, we don’t know that it’s not you logging in.

We take your personal information seriously and this includes giving you the ability to control how long we have access to your information. While we don’t want to see you go, we understand that it’s your choice to make.

To cancel your account and delete your personal information from LoanBuddy, simply sign in, select “My Account,” and at the bottom of the page, you will see a “Delete Account” option.

Note: this option is not currently available on the live site!