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Lucid Dreamer

(584 posts)
Thu Apr 28, 2022, 08:42 PM Apr 2022

If 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 you’re 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 you’re 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 didn’t 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|

28 replies = new reply since forum marked as read
Highlight: NoneDon't highlight anything 5 newestHighlight 5 most recent replies
If you want student loan cancelled, here is the way to go about it. (Original Post) Lucid Dreamer Apr 2022 OP
Thank you for posting this LetMyPeopleVote Apr 2022 #1
I thought this might give some a proactive path to get loan relief. Lucid Dreamer Apr 2022 #6
This message was self-deleted by its author Chin music Apr 2022 #2
Who's going to get handed the bill? Hint: look in the mirror. NT mahatmakanejeeves Apr 2022 #7
This message was self-deleted by its author Chin music Apr 2022 #9
I can think of worse uses for money. Hugin Apr 2022 #10
The "yeah, but what do I get" crowd Bettie Apr 2022 #16
Yes. Congress can pass a bill. maxsolomon Apr 2022 #11
This message was self-deleted by its author Chin music Apr 2022 #17
. WhiskeyGrinder Apr 2022 #3
Ding Ding Ding dwayneb Apr 2022 #13
Interest... deRien Apr 2022 #4
+1000 smirkymonkey Apr 2022 #27
some of us have paid monthly and still owe demtenjeep Apr 2022 #5
My partner is nearly 50. Paying $1,000/month. Sympthsical Apr 2022 #8
Why not do income based repayment? Johnny2X2X Apr 2022 #14
And that's horrific MissB Apr 2022 #19
We are paying for lack of regulation and corruption of our legislature dwayneb Apr 2022 #12
This message was self-deleted by its author Chin music Apr 2022 #18
Help me out here. Lucid Dreamer Apr 2022 #20
So you must also support getting rid of bankruptcy laws? Cuthbert Allgood Apr 2022 #22
Why do you think I support getting rid of bankurptcy law? Lucid Dreamer Apr 2022 #23
"Well . . . you could die." Sympthsical Apr 2022 #15
I'd like to see the school pay 1/2 Bonx Apr 2022 #21
And I believe that people who choose to have children should pay the full cost of raising them meadowlander Apr 2022 #24
Bingo Goodheart Apr 2022 #25
+1 leftstreet Apr 2022 #26
vote democratic. nt wiggs Apr 2022 #28

Lucid Dreamer

(584 posts)
6. I thought this might give some a proactive path to get loan relief.
Fri Apr 29, 2022, 10:09 AM
Apr 2022

It could be faster than waiting for blanket government coverage.

Response to Lucid Dreamer (Original post)

Response to mahatmakanejeeves (Reply #7)

Bettie

(16,188 posts)
16. The "yeah, but what do I get" crowd
Fri Apr 29, 2022, 10:44 AM
Apr 2022

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.

Response to maxsolomon (Reply #11)

WhiskeyGrinder

(22,625 posts)
3. .
Thu Apr 28, 2022, 08:55 PM
Apr 2022
I will say that I believe that people who make promises and sign contracts should keep those promises.
This would make sense if student loans weren't offered, managed and forgiven in utterly capricious, illogical and misleading ways.

dwayneb

(774 posts)
13. Ding Ding Ding
Fri Apr 29, 2022, 10:34 AM
Apr 2022

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

(170 posts)
4. Interest...
Thu Apr 28, 2022, 09:08 PM
Apr 2022

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.

Sympthsical

(9,238 posts)
8. My partner is nearly 50. Paying $1,000/month.
Fri Apr 29, 2022, 10:19 AM
Apr 2022

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

(19,428 posts)
14. Why not do income based repayment?
Fri Apr 29, 2022, 10:36 AM
Apr 2022

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.

dwayneb

(774 posts)
12. We are paying for lack of regulation and corruption of our legislature
Fri Apr 29, 2022, 10:30 AM
Apr 2022

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)

Lucid Dreamer

(584 posts)
20. Help me out here.
Fri Apr 29, 2022, 11:01 AM
Apr 2022
Our government did almost zero to regulate these lenders or to curb the interest rates they could charge, or the terms of the loans.


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.

Lucid Dreamer

(584 posts)
23. Why do you think I support getting rid of bankurptcy law?
Fri Apr 29, 2022, 05:29 PM
Apr 2022

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.

Bonx

(2,091 posts)
21. I'd like to see the school pay 1/2
Fri Apr 29, 2022, 11:12 AM
Apr 2022

So many grifters posing as educationional institutions, providing an expensive and useless 'education'.

meadowlander

(4,413 posts)
24. And I believe that people who choose to have children should pay the full cost of raising them
Fri Apr 29, 2022, 05:45 PM
Apr 2022

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.

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