March 29, 2007

Loan Forgiveness

Posted in Misc at 12:24 PM by kpops


Federal Student Loans may be discharged/canceled under specific circumstances set forth by the Department of Education. As applies to the Stafford Loan, these circumstances include death, permanent disability, school closure, and teaching in a Low Income School. In the case of a Perkins Loan, these circumstances are if you work in certain professions such as Law Enforcement, Nursing or Child Care.

You will need to contact your lender directly in reference to Loan Forgiveness. If you are unsure who your lenders are, your school will have this information on file.

It is possible to have your student loan debt discharged (canceled) or reduced, but only under certain specific circumstances, including death or permanent and total disability; school closure; working as a teacher in a low-income school or in a teacher shortage subject area; or in the case of Perkins Loans, certain other professions (law enforcement, nursing, etc). Your loan cannot be discharged because you were not satisfied with the education that was offered, because you did not complete the program of study, or because you did not get a job after completing the program of study.

The Student Loan Network: Stafford Federal Student
Loans
, Parent PLUS Loans, Student Loan
Consolidation
, Private Student Loans

5 Comments »

  1. Roger S. said,

    Hi,I got a student loan years ago for a airplane mechanic tech. But..due to personal reasons,I did not finished the course but i was responsible to pay the loan in full.I try to pay but over the years this loan had gone out of control with interest of $5000 and now that i’ve been unemployed is not helping.I was injured at work on Dec. 20011.I partially got the problem fixed but I am still injured and unemployed to this date.My doctor’s report found me permanent and stationary disable. Maybe with surgery i hope i can get a little better but nothing has been done but dragging this with no reason since 2011.I have been approved for ssdi.Do I have a chance to be eligible for the student loan forgiveness program With the award letter from ssdi and my Doctor’s report letter ?

    Thanks you for your time and advise.

    Roger S.

  2. Ron Fowler said,

    I am wondering if all, or any part, of a Parent Plus loan may be forgiven if the student should serve in the Peace Corps after graduating. My daughter is seriously considering serving upon graduating, but she needs to do a 5th year of school in order to get requirements met for both of her minors and to spend a semester overseas.

    If so, what is the mechanism or where may I find that information?

  3. Howard,

    Unfortunately you cannot simply get a lower interest rate. Consolidated loans’ interest rates are a weighted average of the original loans, and the interest rates cannot simply be lowered. Nor can you just refinance them – you can’t re-consolidate a consolidation loan unless you have a new loan to roll into a consolidation.

    I think that deferment is your only option…

    I should also note that in the first paragraph you mention a consolidated parent-plus loan, yet in the last you talk about stafford loans. Do you have both? If so, and they are in YOUR name, then you may be able to consolidate them together to get a longer payment period and hence lower monthly payments.

  4. Howard Littman said,

    I have a parent-plus consolidated loan with an approximate balance of $55,000. I am currently totally disabled and have been on social security disability since 2004. I however during that period continued to pay my monthly payments via ach deductions. My health and financial position has deteriated to the point I requested the total disability deferment form. I have little doubt that my physicians will sign the form (multiple health issues). Before submitting the form I attempted to have questions answered by loan carrier, such as a reduced interest rate especially considering the current economic conditions in the counrty. My consolidated rate is 7.625%.
    My questions seem to confuse the carrier or they do not wish to give me an adequate response. I do not wish to receive a forberance in which interest continues to accrue. I have a severe heart condition, I am diabetic, and I have had spinal fusion surgeries. My loans are stafford loans.


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