General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsIf you want student loan cancelled, here is the way to go about it.
I know that I will incur the wrath of about 90% of the people at DU, but I will say that I believe that people who make promises and sign contracts should keep those promises. I do not believe in stroke-of-the-pen elimination of ALL student debt.
That said, here are 11 ways of getting your student loan forgiven, cancelled or discharged.
Student Loan Forgiveness
In certain situations, you can have your federal student loans forgiven, canceled, or discharged. Learn more about the types of forgiveness and whether you qualify due to your job or other circumstances.
Types of Forgiveness, Cancellation, and Discharge
The summaries below offer a quick view of the types of forgiveness, cancellation, and discharge available for the different types of federal student loans.
Public Service Loan Forgiveness
If you are employed by a government or not-for-profit organization, you may be able to receive loan forgiveness under the Public Service Loan Forgiveness (PSLF) Program.
PSLF forgives the remaining balance on your Direct Loans after you have made 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer.
Teacher Loan Forgiveness
If you teach full-time for five complete and consecutive academic years in a low-income elementary school, secondary school, or educational service agency, you may be eligible for forgiveness of up to $17,500 on your Direct Loan or FFEL Program loans.
Closed School Discharge
If your school closes while youre enrolled or soon after you withdraw, you may be eligible for discharge of your federal student loan.
Perkins Loan Cancellation and Discharge
You may be eligible to have all or a portion of your Perkins Loan canceled (based on your employment or volunteer service) or discharged (under certain conditions). This includes Perkins Loan Teacher Cancellation.
Total and Permanent Disability Discharge
If youre totally and permanently disabled, you may qualify for a discharge of your federal student loans and/or Teacher Education Assistance for College and Higher Education (TEACH) Grant service obligation.
Discharge Due to Death
Federal student loans will be discharged due to the death of the borrower or of the student on whose behalf a PLUS loan was taken out.
Discharge in Bankruptcy (in rare cases)
In some cases, you can have your federal student loan discharged after declaring bankruptcy. However, discharge in bankruptcy is not an automatic process.
Borrower Defense to Repayment
You may be eligible for discharge of your federal student loans based on borrower defense to repayment if you took out the loans to attend a school and the school did something or failed to do something related to your loan or to the educational services that the loan was intended to pay for. The specific requirements to qualify for a borrower defense to repayment discharge vary depending on when you received your loan.
False Certification Discharge
You might be eligible for a discharge of your federal student loan if your school falsely certified your eligibility to receive a loan.
If you withdrew from school and the school didnt make a required return of loan funds to the loan servicer, you might be eligible for a discharge of the portion of your federal student loan(s) that the school failed to return.
Forgery Discharge
Forgery is the creation of a false written document or alteration of a genuine one, with the intent to defraud. Victims of identity theft are frequently also the victims of forgery.
If you believe you were the victim of forgery, you might be eligible for a discharge of federal student loan(s) fraudulently made in your name.
Eligibility for Parent Borrowers
As with loans made to students, a parent PLUS loan can be discharged if you die, if you (not the student on whose behalf you obtained the loan) become totally and permanently disabled, or if your loan is discharged in bankruptcy. Your parent PLUS loan may also be discharged if the child for whom you borrowed dies.
more at:
[link:http://studentaid.gov/manage-loans/forgiveness-cancellation|
LetMyPeopleVote
(145,195 posts)Lucid Dreamer
(584 posts)It could be faster than waiting for blanket government coverage.
Response to Lucid Dreamer (Original post)
Chin music This message was self-deleted by its author.
mahatmakanejeeves
(57,438 posts)Response to mahatmakanejeeves (Reply #7)
Chin music This message was self-deleted by its author.
Hugin
(33,140 posts)Like spending a night in a Trump property.
Bettie
(16,104 posts)is very opposed to anyone who isn't a billionaire getting any relief.
But, ultimately, people who are currently putting that cash in the vaults of banks having it to exchange for goods and services is good for our economy. I think many people choose not to see that.
maxsolomon
(33,331 posts)What are the odds considering the composition of the Senate?
Response to maxsolomon (Reply #11)
Chin music This message was self-deleted by its author.
WhiskeyGrinder
(22,334 posts)dwayneb
(768 posts)See my post below on this topic.
Our government did NOTHING to prevent these predatory lenders from doing whatever they wanted.
These loans should have been heavily regulated with strict curbs on interest rates and terms. Instead, the lending institutions deliberately worked to keep Congress from passing any laws to restrict their pseudo-legal activities.
deRien
(165 posts)I think that they should be looking at forgiving interest that has accrued especially for those who paid the minimum amount due to income. In some instances this has resulted in owing thousands more than was borrowed. The other way would be to reduce interest rates... some loans are at 6% or more. Full disclosure, one of our children has large student debt. Also, instead of a flat amount ($10,000) I think that it should be a percentage.
smirkymonkey
(63,221 posts)demtenjeep
(31,997 posts)as much as we borrowed 25 years later
Sympthsical
(9,073 posts)I thought he was paying a lot less, but we had a discussion about it recently. PharmD degree.
His remaining balance is . . . not what one would hope it would be.
And he's paying a lot more than required, because he wants them gone before retirement.
People don't know how this stuff works, because they never had to deal with it.
Johnny2X2X
(19,064 posts)IBR is 10% of your income after an adjustment that is 1.5 times the poverty income in the US. And it comes with total forgiveness after 20 years for undergrad loans and 25 years for grad loans?
And they're likely changing this from 10% to 5 % later this year.
MissB
(15,807 posts)It shouldnt be like that.
dwayneb
(768 posts)You say "people who make promises and sign contracts should keep those promises".
While in general I agree with this, we cannot ignore that fact that student loan lenders and the subsequent consolidation schemes were incredibly predatory and deliberately deceiving and difficult to comprehend.
Particularly for a young person who does not have the wisdom to understand what they are getting into, I think that these companies were/are nothing more or less than loan sharks.
Our government did almost zero to regulate these lenders or to curb the interest rates they could charge, or the terms of the loans. And there is no doubt that it was the influence of these lenders on Congress and legislators that pretty much gave them free rein.
Response to dwayneb (Reply #12)
Chin music This message was self-deleted by its author.
Lucid Dreamer
(584 posts)Thanks. Were the interest rates raised during the loan repayment period without warning? Were alternatives offered before those raises?
I'm not up with all the financial machinations on these loans and any insight you have would be appreciated.
Cuthbert Allgood
(4,921 posts)Since, you know, contracts were signed.
Lucid Dreamer
(584 posts)I said nothing about bankruptcy at all.
My statement was:
"I will say that I believe that people who make promises and sign contracts should keep those promises."
And I will add:
If I sign a contract, I will keep that promise.
This discussion was really about the provisions for getting educational loans dismissed.
Sympthsical
(9,073 posts)Thanks for that information. Was worried there'd be solutions in this.
Bonx
(2,053 posts)So many grifters posing as educationional institutions, providing an expensive and useless 'education'.
meadowlander
(4,395 posts)but I'm not going to complain about child tax credits or subsidized day care or free public education or WIC because happy, healthy, well-fed and educated children are a public good that I benefit from down the road in the form of competent doctors, civil engineers, tech designers, journalists, politicians, fellow voters, etc.
Not having an entire generation of young people with crippling student loan debt delaying them buying homes and having families, unable to assist their aging parents, and trapping them in jobs they hate and are less productive in is a public good that we should be supporting regardless of an abstract principle that anyone who signs a contract should be forced to meet the terms of the contract regardless of any other circumstances or factors.
Goodheart
(5,324 posts)leftstreet
(36,108 posts)nicely stated