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).
John Hilaire
http://www.articlesbase.com/non-fiction-articles/teach-you-how-to-cancel-your-student-loans-107797.html
March 8th, 2009 at 6:43 am
What type of bankruptcy qualifies for student loan cancellation?
Also, where do I apply to teach to a low income school to have my student loan debt cancelled?
March 8th, 2009 at 11:45 am
If you have a federal loan, I don't think you can get rid of it. A friend of mine and her husband filed for bankruptcy and he had a student loan that they said couldn't be taken off, he has to pay it back.
References :
March 8th, 2009 at 11:47 am
You can't cancel a student loan debt on any of the bankruptcy chapters. You must pay!!! If you can't pay right away. You can file for a in-school deferment or an economic hardship. If your student loan goes into default. It will ruin your credit and you will be unable to buy a house in the future.
References :
March 8th, 2009 at 11:49 am
It's very difficult to do. Read more here http://www.ed.gov/offices/OSFAP/DCS/loan.cancellation.discharge.html#Bankruptcy
Effective October 8, 1998, your obligation to repay Title IV, HEA student loan and grant liabilities can no longer be canceled (discharged) due to bankruptcy, unless you can successfully prove that repayment of the debt would cause "undue hardship" as defined by case law in your jurisdiction.
References :
http://www.ed.gov/offices/OSFAP/DCS/loan.cancellation.discharge.html#Bankruptcy
March 8th, 2009 at 11:51 am
You can not get student loans discharged in bankruptcy.
Depending on your federal loan type Perkins loans can be discharged more easily than Stafford, but even Stafford can now be discharged. To apply for this benefit, you must contact the holder of your current loan and complete their paperwork.
See the tables on page 34 and 35 of the attached book for the terms and conditions of having your loan discharged for teaching, working in head-start, law enforcement, and early intervention services for the disabled.
To see if your school is considered a low income school go to
http://FederalStudentAid.ed.gov
References :
http://studentaid.ed.gov/students/attachments/siteresources/FundingEduBeyondHighSchool_0809.pdf (pg 34 & 35)