FAQ

Student loans are confusing. LoanBuddy tries to make it easy. Get answers to the top questions customers ask.

Have a specific student loan question? Post it in our Facebook Group!

Get To Know LoanBuddy

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

When you start the process with LoanBuddy, we ask you for all the information we need to help determine the lowest cost repayment plan for you. For our premium subscribers, you’ll also get access to our dashboard that can given you multiple loan scenarios, track your Public Service Loan Forgiveness eligibility, and more.

LoanBuddy is a freemium product. We’ll tell you the lowest cost repayment plan option for you (based on the information you tell us) for free. That’s right! FREE. If you want, you can take that knowledge and go change your repayment plan with your loan servicer yourself. We’re big on DIY, and we know that some people are as well.

But, if you want more assistance, we offer two premium plans: LoanBuddy Plus and LoanBuddy Lifetime. You can learn about our pricing plans here.

No. We are not associated with the Department of Education or your loan servicer. We don’t work with them, speak to them on your behalf, or do anything with your loans. Only you can do that.

Our goal is to empower you with the tools and services so that you can conquer your debt. Our tool will help you navigate the complex world of student loans, and show you the paperwork you need to get on the best repayment program for you.

We take your personal information seriously, including giving you the ability to control what happens with your information. While we don't want to see you go, we understand you want to have a say.

To cancel your account and delete your personal information, simply "Sign In", select "My Account", and at the bottom of the page, there is a "Delete Account" option.

Getting Started?

We do ask personal information from you - and we need that to help calculate the best repayment plan for you, and to also help create the paperwork you need to send to your loan servicer.

We need your name, address, phone number, Social Security number, loan information, and income information. We may also need information about your family.

All information is kept secure with bank level encryption technology.

No, we do not do 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.

Getting Student Loan Advice

LoanBuddy is a Do-It-Yourself product, and we don't offer any one-on-one consultations or personalized advice. 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 with experience in student loan debt, and they can help you create a plan if you don't feel comfortable doing it yourself.

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 that is forgiven is considered taxable income.

However, that doesn't necessarily mean you pay taxes on it. Tax law is complex - and many 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 tax professional to prepare your tax return.

How you 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 changes with 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.

You should consult the advice of a tax professional who can walk you through the implications of your tax filing status. You can then take that answer and see how each situation would impact your student loan repayment.

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

Other

LoanBuddy puts a high 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 only will share your loan data and other information with third party lenders if you want to refinance and select "Refinance my loans". Otherwise, we don't pass any personal information to third parties.

We recommend that you create a very strong password, one that isn't re-used (use a password manager), and is a mix of upper case, lower case, numbers, and symbols. Remember, while we protect your data, if someone has your password, we don't know it's not you.

We empower you to make personal choices about your data and information. As such, we don't make you go through any hoops to cancel. Simply select "My Account", scroll to the bottom, and select "Delete Account". We're sorry to see you go.