Federal Resource Guide: Real Life Considerations for Older Adults: Debt and Loans

Federal Resource Guide

Real Life Considerations for Older Adults

Debt and Loans

The purpose of this guide is to help you

understand federal benefits and services that

may be available to you. You can find more

information about loan and debt repayment

options as well as paying utility bills and

addressing credit concerns.

Point your smart phone camera at this QR code

to access the digital version of this guide.

This resource guide was developed for the project Increasing

Access to Decision-Making Support For Older Adults within the

Approaching Retirement Life Experience.

The

guide was prepared under the direction of the President’s

Management Council

, with particular support from the Oice of

nagement and Budget, the General Services Administration,

and funds made available for Federal Government Priority Goals

to implement select Life Experience projects in support of the

President’s Management Agenda. Priority 2 of the President’s

Management Agenda focuses on delivering excellent, equitable,

and secure Federal services and customer experience by

designing, building, and managing government service delivery

for key life experiences that cut across federal agencies.

This guide consolidates resources and benefits information from

seven federal agencies to support older adults in their ability to

make informed decisions about health care, finances, housing,

and nutrition.

The guide incorporates expertise and materials from the

following federal agencies and departments:

• Administration for Community Living, U.S. Department of

Health and Human Services

• U.S. Department of Agriculture

• Centers for Medicare and Medicaid Services, U.S.

Department of Health and Human Services

• Consumer Financial Protection Bureau

• U.S. Digital Service, Oice of Management and Budget

• U.S. Department of Housing and Urban Development

• Internal Revenue Service, U.S. Department of the Treasury

• Social Security Administration

Overview

This guide addresses the following questions

Student

Loans

• I am behind on my student loans. What can I do? (p. 4)

•

How can I get temporary relief for student loans? (p. 5)

Medical

Bills

• Is there financial help for my medical bills? (p. 6)

• How do I ask about charity care or financial assistance? (p.7)

Housing

Expenses

•

I am unable to pay my mortgage, how can I get help? (p. 8-9)

•

I am struggling to pay my utility bills, what are my options? (p. 10)

Debt Collection •

I have a past due bill in collection, how can I get help? (p. 11)

Credit

• My credit report is inaccurate, what can I do? (p. 12)

•

How can I learn about building and maintaining good credit? (p. 13)

This guide answers questions at a high level and points you to

federal resources to take action or learn more.

Debt and Loans: Student Loans

I am behind on my student loans.

What can I do?

Whether you are just beginning to repay your

student loan(s) or have been in repayment for a

while there are solutions to make your payments

more aordable.

An income-driven repayment (IDR) plan can make your

payments more aordable because they are based on your

income. Under an IDR plan, payments may be as low as $0

per month. Use the Department of Education’s Loan Simulator

to estimate your monthly payments.

If you’ve had an increase in family size or a decrease in income,

you can apply to have your current IDR plan recalculated.

RESOURCES

Apply for, or

change, an

Income-Driven

Repayment Plan:

Explore Income-Driven

repayment options.

Visit: studentaid.gov/idr

Estimate

your monthly

payments:

Use the Department of

Education’s Loan Simulator to

compare estimated monthly

payment amounts for all federal

student loan repayment plans,

including Income-Driven plans.

Visit: studentaid.gov/loan-

simulator

It’s important to recertify every year! If you don’t recertify on time,

you’ll be removed from the income-driven repayment plan and your

monthly amount due will very likely increase.

v3. Dec. 2023

Debt and Loans: Student Loans

How can I get temporary relief for

student loans?

A deferment or forbearance allows you to

temporarily stop making your federal student loan

payments or temporarily reduce your monthly

payment amount. This may help you avoid default.

In most cases, interest will accrue during your period of

deferment or forbearance. This means your balance will increase

and you’ll pay more over the life of your loan.

If you’re pursuing loan forgiveness, any period of deferment or

forbearance likely will not count toward your forgiveness

requirements. This means you’ll stop making progress toward

forgiveness until you resume repayment.

Consider another repayment plan first:

Because of the impact on interest and potential loan

forgiveness, it might be worth exploring another repayment

plan before you consider deferment or forbearance.

For example, your payments could be more aordable if

you change to an income-driven repayment plan.

RESOURCES

Apply for

deferment or

forbearance:

aid account(s) to apply for

deferment or forbearance.

Visit: studentaid.gov/manage-

loans/lower-payments/get-

temporary-relief

Visit: studentaid.gov/manage-

loans/lower-payments/get-

temporary-relief/deferment

CFPB stands for the

Consumer Financial

Protection Bureau

Debt and Loans: Medical Bills

Is there financial help for my medical bills?

Financial assistance programs, sometimes

called “charity care,” provide free or discounted

health care to people who need help paying

their medical bills.

The law requires hospitals with 501(c)(3) nonprofit status to

provide this free or discounted care. Hospitals are required to

have a written Financial Assistance Policy (FAP) and a written

Emergency Medical Care policy. These policies should be

widely publicized.

RESOURCES

Read about

charity care

and financial

assistance

policies:

The IRS provides more

information on their website.

Visit: irs.gov/charities-non-profits/

financial-assistance-policies-faps

Check your

state’s charity

care laws:

Laws may dier across states.

CFPB has information about

this topic.

Visit: consumerfinance.gov/ask-

cfpb/is-there-financial-help-for-

my-medical-bills-en-2124

Learn about

your protections

against surprise

medical bills:

Centers for Medicare &

Medicaid Services (CMS) oers

detailed information about

your protections.

Visit: cms.gov/medical-bill-rights

CFPB stands for the

Consumer Financial

Protection Bureau

Debt and Loans: Medical Bills

How do I ask about charity care or

financial assistance?

Step 1: Ask for a free copy of the hospital’s

Financial Assistance Policy.

Step 2: Fill out an application form.

You may need to provide information about your income,

including last year’s tax forms or a current pay stub, and your

expenses, including your rent or mortgage payment, utilities,

credit cards, and other expenses.

Step 3: Speak with your provider.

Ask your provider:

• How long does it take to process my application for

financial assistance?

• How do I get answers to questions about the application?

• What happens to my bill while I wait?

Step 4: Notify any debt collectors.

Notify any debt collectors that you’re seeking financial

assistance for the bill and tell them to pause collections while

that process plays out. If they already reported it on your

credit, you can dispute the bill.

Step 5: Follow up with your provider about the

status of your application as necessary.

CFPB has guidance on charity care. Visit: consumerfinance.gov/ask-cfpb/

is-there-financial-help-for-my-medical-bills-en-2124

Debt and Loans: Mortgage

I am unable to pay my mortgage,

how can I get help?

Option 1: Many mortgage servicers have

programs to help people avoid foreclosure.

The servicer may ask you to fill out a

mortgage assistance application.

RESOURCES

Call your

mortgage

servicer:

When you reach out to your

mortgage servicer, be prepared

to explain the following:

• Why you are unable to make

our payment

• Whether the problem is

temporary or permanent

• Details about your income,

expenses and other assets

like cash in the bank

• If you are a servicemember

and hav

e received permanent

change of station (PCS)

orders. This is important to

mention, because you may

qualify for loss mitigation

options because of your

military move

Find the contact information of

your mortgage servicer on their

website or your most recent mail

if applicable.

See page 9 for option 2: Find a HUD-approved Housing Counselor

I am unable to pay my mortgage,

how can I get help (continued)?

HUD stands for

the U.S.

Department

of Housing

and Urban

Development

Debt and Loans: Mortgage

Option 2: HUD oers guidance to homeowners

who might find themselves with financial concern

through a network of over 1,500 national, state,

and local HUD-approved Housing Counseling

Agencies.

A housing counselor can:

• Determine whether you qualify for any programs or

additional help

• Help you understand the options your servicer oers to help

you avoid foreclosure and determine which options might

work best for you

• Guide you through the process of working with your servicer

and any other programs and paperwork you may need

• Help you at little or no cost with budgeting, credit card debt,

or other financial problems that may be making it hard to

pay your mortgage

RESOURCES

Find a HUD-

approved

housing

counselor:

Search the HUD database or

visit the Housing Opportunities

for People Everywhere

(HOPE) Hotline, which oers

personalized advice from

housing counseling agencies.

It’s open 24 hours a day, seven

days a week.

Visit: HUD.gov/findacounselor

Call: 1-800-569-4287

Call: If you are deaf, hard of

hearing or have a speech

disability, use 1-202-708-1455

for TTY

Debt and Loans: Utilities

I am struggling to pay my utility bills,

what are my options?

The federal government oers free utilities

assistance through the Low-Income Home Energy

Assistance Program (LIHEAP), Low-Income

Household Water Assistance Program (LIHWAP),

and the Weatherization Assistance Program.

RESOURCES

Get help paying

for your heating,

cooling or

emergency

energy needs:

LIHEAP can help you pay your

heating or cooling bills or get

emergency services during an

energy crisis.

Visit: liheapch.acf.hhs.gov/

search-tool

Call: 1-866-674-6327

Representatives are available

Weekdays from 9:00 a.m.

- 7:00 p.m. ET

Email: energyassistance@ncat.

org Include your state, territory,

or tribe.

Get help

paying for

your water

bill:

LIHWAP can help you pay your

water bill.

Visit: acf.hhs.gov for resources

in your state or territory.

This resource oers many

language options.

Email: lihwapstates@acf.hhs.gov

for other questions.

Make your

home more

energy

eicient to

reduce your

bill:

The Weatherization Assistance

Program can help reduce your

energy bills by making your

home more energy-eicient.

There are income eligibility

restrictions.

Visit: energy.gov

Call: 1-202-586-5000

If you are deaf, hard of hearing

or have a speech disability, use

7-1-1 to access TTY

CFPB stands for

the Consumer

Financial

Protection Bureau

Debt and Loans: Debt Collection

I have a past due bill in collection,

what are my options?

If a debt collector contacts you, use the opportunity

to find out about the debt, which will help

determine if they’re legitimate and if you really

owe it.

When a debt collector first contacts you about a debt, they

are, in general, legally required to provide you with certain

information about the debt during that initial communication

or within five days of the initial communication. This validation

information includes the name of the creditor, the amount you

owe, and how to dispute the debt.

If the debt collector doesn’t or can’t provide this information,

it could be a scam. Never give sensitive financial information to

the caller, at least not until you’ve confirmed they’re legitimate.

RESOURCES

Submit a

complaint with

the CFPB:

If you are having an issue with

debt collection, the CFPB may

be able to help.

Visit: consumerfinance.gov/

complaint

Learn how to

communicate

with debt

collectors:

CFPB provides guidance on

what you should do when a debt

collector contacts you.

Visit: consumerfinance.gov/ask-

cfpb/what-should-i-do-when-

a-debt-collector-contacts-me-

en-1695

Debt and Loans: Credit

My credit report is inaccurate, what can I do?

If you identify an error on your credit report,

you may need to send a dispute letter to both the

institution that provided the information as well

as the credit reporting company.

RESOURCES

Check your

credit report:

Use the Annual Credit Report

tool to get a free copy of your

credit report once per year from

all three major credit reporting

companies (Equifax, Experian,

and TransUnion).

Visit: annualcreditreport.com/

index.action

Submit a

dispute with

an information

furnisher:

Use the sample letter on the

Consumer Financial Protection

Bureau (CFPB) website to submit

a dispute with the institution

that provided the information

(information furnisher).

Visit: consumerfinance.

gov/consumer-tools/credit-

reports-and-scores/sample-

letters-dispute-credit-report-

information/

Submit a

dispute with a

credit reporting

company:

Submit a dispute with a credit

reporting company. If available,

include documentation and

details of the disputed item,

and circle or highlight.

Visit: consumerfinance.

gov/consumer-tools/credit-

reports-and-scores/sample-

letters-dispute-credit-report-

information/

Debt and Loans: Credit

How can I learn about building and

maintaining good credit?

Most credit counselors oer services through

in-person meetings at local oices, online, or

on the telephone.

Credit counseling organizations can advise you on your

money and debts, help you with a budget, develop debt

management plans, and oer money management

workshops. Working with a credit counselor can be a

great way of getting free or low-cost financial advice from

a trusted professional.

Counselors discuss your financial situation with you

and help you develop a personalized plan to solve your

money problems.

RESOURCES

Find a credit

counseling

organization:

Try the Financial Counseling

Association of America and/

or the National Foundation for

Credit Counseling. The U.S.

Department of Justice also

provides a list of approved credit

counselors.

Visit: fcaa.org

Visit: nfcc.org

Visit: justice.gov/ust/list-credit-

counseling-agencies-approved-

pursuant-11-usc-111

Check to see if

credit counselors

are reputable:

Check with your state attorney

general and state consumer

protection agency to make

sure your list of potential credit

counselors are reputable.

Visit: usa.gov/state-consumer

Visit: naag.org/find-my-ag