Mortgage Forum

Zino

Under certain circumstances, you may be able to cancel your obligation to repay your federally guaranteed student loans, defer your payments, or enter into a payment schedule that fits with your income. If you're in default, you may be able to get out of default and avoid a lawsuit, wage garnishment, or loss of your tax refund.

The student loan scheme is quite complex, depending on the type of loan you have and when you obtained it. Before taking action on your loan, you must understand what kind of loan it is. Your ability to negotiate with your lender, defer your payments, or possibly cancel your loan may depend on the type of loan you have.

There are three primary kinds of federally guaranteed student loans: campus-based loans, bank loans, and Department of Education-issued loans. Campus-based loans are called Perkins Loans or the older National Direct/Defense student loans (NDSLs). Bank loans are called Federal Family Education Loan Program (FFELP) loans and include Stafford Loans (previously called Guaranteed student loans (GSLs) or Federal Insured student loans (FISLs), PLUS Loans (loans for parents), SLS Loans, and consolidation loans. Loans issued directly by the Department of Education are called Direct Loans and include Stafford, PLUS, and consolidation loans.

Depending on the type of loan you have and when you obtained it, you may be able to cancel all or a portion of your loan under one of the following circumstances:

1. The former student for whom the loan was taken has died.
2. You become totally and permanently disabled.
3. Your school closed before you could complete your program of study.
4. Your school falsely certified that you were eligible for a student loan.
5. You left school and were entitled to a refund but never received the money.
6. You teach in a Department of Education-approved school serving low-income students or in designated teacher shortage areas (other types of teacher cancellations are available for Perkins loans).
7. You serve in the U.S. military (partial cancellation for Perkins loans only).
8. You're a full-time employee of a public or nonprofit agency providing services to low-income, high-risk children and their families (Perkins loans only).
9. You're a full-time nurse or medical technician (Perkins loans only).
10. You're a full-time law enforcement or corrections officer (Perkins loans only).
11. You're a full-time staff member in a Head Start program (Perkins loans only).
12. Your a Peace Corps or VISTA volunteer (Perkins loans only).

College Loan Deferment is another option

If you have been dreaming of going to college, but don't have the money, you are in luck. With all of the college loans available, people of all different income levels are going to college to help make their dream come true.The college loan has given a great chance to students who lack good financial background. Loans for educational assistance can be an important assistance in college payment.

One of the great benefits of these loans is that they offer a low interest rate and a generous repayment period. There are provisions for loan cancellation, too, if you perform a program-related service. You will find that there are many different types of loans that can be used for college. The key is to try and find the student loan that fits you the best. One of the most common and widely used types of college loans is the Federal Stafford Loan.

There are federal guidelines that limit the maximum interest rate of college loans to no more than 8.25% and set up repayment terms that can be as much as 10 years. If you find that you cannot pay the loan payments or are beginning to fall behind, you can consider consolidating your student loans.

College education is expensive. The college loan is an option for students which allow them to pay the installments after they finish their education and start working. The college loan is given at low interest rate for students .

The College provides many options for educational loans, you have to select a loan which suits you. Many college loan applications are available online. With online loan applications and loan procedures documentation available on the internet students can have easy access to information.

Ways for you to get a College Loan deferment

A college loan deferment should be considered if you cannot make your loan payments. A loan deferment is when your payments are suspended for special reasons. If your Stafford Loan was taken after July 1, 1993, you are usually eligible to defer payments if you are enrolled at least half-time at an eligible school, are unemployed, in a graduate fellowship program, in a rehabilitation training program for people with disabilities, or suffering economic problems.

Receiving a college education is quite expensive, but by researching and getting the right student loan you will be on your way to acheiving your dream of a college diploma before you know it!

rachael24

I dont know anyone who ever cancelled their loan...Have you done this, or anyone you know?

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Recent college graduate with a credit consolidation concentration.

Zino

Yes it's definitely possible given the right circumstances, it's certainly not something everyone is entitled to do though.

I know a family who got their sons student loan canceled due to option two, their son received a permanent disability due to a car accident which put them in financial hardship due to medical bills and paying for carers.

So they were able to get it canceled this way and avoid wage garnishment or legal bills for non payment. If i recall correctly it cost them a few hundred dollars in paperwork.

The Perkins loan seems to be the most flexible for cancellations.

rachael24

Ahh I never even thought of a disability situation...good point.

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Recent college graduate with a credit consolidation concentration.

Glenn Dorsey

I hadn't thought about a disability situation either. Neat. Now I just need to get disabled so i can cancel all the loans I owe on! lol Anybody know a good knee breaker that I could hire?

Zino

I guess if there's a bar in your town where a biker club hangs out, you could go down and kick one of their bikes over. It's a good cost cutting measure, i mean if your in debt getting a knee breaker for free will help with the outgoing expenses.

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