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).
If you plan to acquire that higher education, then you might as well plan on spending some bucks. Then again, you could be one of those seriously fortunate individuals who attained a scholarship after high school.
That is outstanding! If you can get a scholarship, then take it. It's free cash to help pay for school. That means less debt to grapple with in the future. By the time you graduate from a University, you'll be stoked you earned that extra dough for college.
It makes bill-paying much easier out in the "real world."
There are a number of sources to exhaust when it comes to contemporary college loans. The first major one you may wish to try involves the Internet. This is not difficult at all really. What you need to do is grab your notebook computer and kick back on the sofa. Pull up a little website called FAFSFA.com. This is where the college loans and financial aid process starts.
Fill out this FAFSFA application and attain a pin number. Now I have to warn you; this can take about an hour to fully fill out. You'll probably receive your pin number by email or snail mail in a few days. Be ready with all sorts of information at hand when you fill out your FAFSFA. They will want data on your parents and where they work and went to college. Like I said; this can take a while.
However, once you're completely finished with the FAFSFA application, you won't have to do it again. Sure, you may have to update it each year, but that only takes a minute.
Whatever you do, don't avoid this process. This is the key to financial aid and college loans. You need to strive for all the aid you can get. This is a college career we're talking about here. It certainly doesn't come cheap.
I can still recall when I was driven to get as much college financial aid as possible. One of my very first professor's informed me that her daughter receives 25 grand a year in grants alone. That's phenomenal. I too wanted this.
The less college loans I had to pay back down the road, the better. Trust me when I say that grants are the best.
Both John Hilaire & John Pawlett are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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