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).
Benefits Of A Debt Management Plan
A) Are acceptable to all your creditors.B) Leave you enough money to handle your living expenses.C) Generally get you o...
benefits-of-a-debt-management-plan.php
A List Of Rights You Have Against Debt Collectors Part 2
1. Falsely stating or implying that the d...
a-list-of-rights-you-have-against-debt-collectors-part-2.php
Staying Out Of Debt With The Irs At Tax Time
You may have income not subject to withholdi...
staying-out-of-debt-with-the-irs-at-tax-time.php
Benefits Of Working With A Credit Counseling Agency Part 1
A) Detail what you owe.B) Give you an or...
benefits-of-working-with-a-credit-counseling-agency-part-1.php
A List Of Rights You Have Against Debt Collectors Part 3
1. Collecting any money at all - such as interest, late fees, or any charges other than the principal...
a-list-of-rights-you-have-against-debt-collectors-part-3.php
All Women Need To Read This Understanding The Equal Credit Opportunity Act
One of the main problems with the ECOA is that it is difficult to prove discri...
all-women-need-to-read-this---understanding-the-equal-credit-opportunity-act.php
Talking With A Creditor 5 Steps Of The Negotiation Cycle
Your bargaining power in this technique is your willingness to repay your creditor the money that you owe h...
talking-with-a-creditor---5-steps-of-the-negotiation-cycle.php
4 Ways To Help Boost Your Credit Score
1. Try to Get Positive Accounts Reported: You know that the credi...
4-ways-to-help-boost-your-credit-score.php
Getting A Bad Credit Loan
Getting a bad credit loan is not an easy task but...
getting-a-bad-credit-loan.php
Filing For Bankruptcy Which Plan Is Right For You
Filing a Chapter 7 bankruptcy can mean you have to give up some of your assets (property ...
filing-for-bankruptcy---which-plan-is-right-for-you.php
It's Tough To Save Money When You Are Already Broke But You Can Do It
You are probably thinking at this very moment: ...
it's-tough-to-save-money-when-you-are-already-broke-but-you-can-do-it.php
Are You A High Risk Or Low Risk Credit Applicant Understanding Your Fica Score
Credit scoring uses your credit history to evaluate the likelihood of your loan going into default. Scor...
are-you-a-high-risk-or-low-risk-credit-applicant---understanding-your-fica-score.php
Ways To Get Out Of Debt & Save Money Part 1
Understand that there are monthly expenditures that you may not be abl...
ways-to-get-out-of-debt-&-save-money-part-1.php
How To Build Credit In Your Own Name After A Divorce
Getting credit in your own name is also an excellent strategy for repairing your credit if:...
how-to-build-credit-in-your-own-name-after-a-divorce.php
Cleaning Up Your Credit Without Paying
This process, as outlined in the FDCPA, is quite different from the ...
cleaning-up-your-credit-without-paying.php
Financial Records Create An Effective Filing System
• Banking records (including checking and savings accounts)• Bills paid (where you file regular monthly expens...
financial-records---create-an-effective-filing-system.php
Resourcesother
...
resourcesother.php
Ways To Get Out Of Debt & Save Money Part 2
Once It's in Savings, Leave It There: A good rule of thumb for...
ways-to-get-out-of-debt-&-save-money-part-2.php
The Benefits Of Keeping An Open Checking Account
A savings or money market account, too, will improve your standing with cr...
the-benefits-of-keeping-an-open-checking-account.php
Whats The Best Time To Negotiate With Creditors
If your credit is already shot, at other times, it's often more advantageous to negotiate with credit...
whats-the-best-time-to-negotiate-with-creditors.php
Saving Money And Becoming Debt Free Requires Deep Changes
Once you get to the point where you believe that budgeting and sa...
saving-money-and-becoming-debt-free-requires-deep-changes.php
Benefits Of Working With A Credit Counseling Agency Part 2
A good credit counselor offers solutions with your future goals in focus. A solution that works best ...
benefits-of-working-with-a-credit-counseling-agency-part-2.php
What To Do When There Is A Bank Error In Credit Reporting
Credit reporting is an important tool that banks use to ensure they get paid. Banking is also a highly regulated indu...
what-to-do-when-there-is-a-bank-error-in-credit-reporting.php
The Importance Of Keeping Good Financial Records
Personally speaking, I'm pleased to be able to say that I can fi...
the-importance-of-keeping-good-financial-records.php
The Shocking Truth Behind Credit Report Inaccuracies
According to a number of consumers groups in the United States, many credit reports are filled with in...
the-shocking-truth-behind-credit-report-inaccuracies.php
Innovis The Credit Report You've Probably Never Heard Of
As recently as 2003, Innovis denied that it was actually in the credit-reporting business. There are numerous p...
innovis---the-credit-report-you've-probably-never-heard-of.php
Applying For A Credit Card Check Out These 5 Comparison Shopping Tips
Here's what you should look for in a credit card:...
applying-for-a-credit-card---check-out-these-5-comparison-shopping-tips.php
How Being Frugal Can Help You Gain Financial Independence
Being a cheapskate doesn't mean you can't enjoy life; it just means you enjoy life while ma...
how-being-frugal-can-help-you-gain-financial-independence.php
8 Solid Tips When Applying For Credit Cards
1. Be consistent with the name you use. Use your middle initial always or never. ...
8-solid-tips-when-applying-for-credit-cards.php
5 Questions You Must Ask A Credit Counseling Service Before Deciding
Credit counseling is not a good option if y...
5-questions-you-must-ask-a-credit-counseling-service-before-deciding.php
Relationships And Money Research Your Partners Debts Before Making Big Choices
Understand that even though you may be living off one paycheck, it...
relationships-and-money---research-your-partners-debts-before-making-big-choices.php
Ways To Get Out Of Debt & Save Money Part 3
If you can, select a certain percentage of your i...
ways-to-get-out-of-debt-&-save-money-part-3.php
What Are Rapid Rescoring Services How Can They Help My Credit
1. They can't deal with you directly as a consumer - Rapid...
what-are-rapid-rescoring-services-how-can-they-help-my-credit.php
Why Do So Many Adults Have A Hard Time Managing Their Money
Remember back in high school when you were learning calculus, art and...
why-do-so-many-adults-have-a-hard-time-managing-their-money.php
Myth Closing Credit Accounts Will Help Your Score
Of course, if you think about it, what's kept you from racking up big balances before now? If you've been pretty r...
myth---closing-credit-accounts-will-help-your-score.php
Are You Unemployed Learn The Smart Way To Utilize Your Credit & Your Cash
Prospective employers often pull a credit report as part of the employment proces...
are-you-unemployed---learn-the-smart-way-to-utilize-your-credit-&-your-cash.php
Links Page
...
Links-Page.php
Disputing With Credit Bureaus Know Your Rights
The FCRA provides a list of rights and procedures that will assist you i...
disputing-with-credit-bureaus---know-your-rights.php
How Identity Theft Can Crash In Innocent Persons Credit
Thieves tend to do the most damage when they can take over your identity wholesale. By pretending to be y...
how-identity-theft-can-crash-in-innocent-persons-credit.php
A List Of Rights You Have Against Debt Collectors Part 1
1. Can't tell third parties, such as your boss or neighbors that...
a-list-of-rights-you-have-against-debt-collectors-part-1.php
Learn How To Read Your Credit Report
These days, bad marks on your credit repo...
learn-how-to-read-your-credit-report.php
Questionnaire To Determine If Your Future Spouse Is Financially Compatible
1. What is your annual income?2. How much money do you curr...
questionnaire-to-determine-if-your-future-spouse-is-financially-compatible.php
