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Trouble With Student Loans (Also Includes Default, Discharge & Bankruptcy)

Can't Repay Your Student Loans? (FFEL & Direct Loan Repayment Plans For Those With Financial Hardship)
Are you on the wrong payment plan? If so, you may be able to change to a better one. Learn the pros and cons of "Pay As You Earn" and "Income Based Repayment Plans". Not everyone qualifies for both. For example: The latter applies only to loans from between Oct 2007 and Oct 2011. Both programs may require you pay taxes on any loan amounts eventually forgiven.

Help With Private Student Loans: The Consumer Financial Protection Bureau's Student Loan Complaint System
This new agency will work with you and your lender for a better payment plan. What they can actually do is not clear. The CFPB takes complaints, gathers data and will talk to the lender on your behalf. Lenders know that unresolved complaints could mean new laws very unfavorable to them; so they have good reason to cooperate at least to some extent. Use them as an advocate.

Help With Federal Loans: The Department of Education’s Federal Student Aid Ombudsman
The Federal Student Aid Ombudsman Group is where individuals can turn after trying other ways to resolve a federal student aid dispute. Assistance request are generated from phone calls, letters and e-mails, and are classified as either general assistance or research problem assistance.

Delay or Postpone Your Student Loan Repayment If You're Pregnant, Unemployed, Etc.
There are good and bad deferments that can stop your loan payments: In a good deferment, the government pays all the accruing interest, so if you stop paying for 6 months, your debt is the same as when the deferment began. (For example, with federal subsidized Stafford Loans, the federal government pays your interest while you defer.) In a bad deferment, your loan payments stop as well, but you're still responsible for all the accruing interest, which is then tacked on to the rest of your student loan. These deferments should be avoided because this "quick fix" could get you into thousands of dollars of more debt. Please look for better options with the numerous student loan help groups listed here or elsewhere!

Common Situations Where You May Qualify For Some Kind of Deferment

• When you return to school, or undertake medical residency or internship.
• If you become unemployed, disabled, or experience a period of economic hardship.
• While you’re pregnant, or caring for a newborn or have just adopted a young child.
• If you’re a teacher in a high-need area.
• If you work in public service.

Do I Have Private or Federal Loans And Who Owns Them?
If you aren’t sure what kind of loans you have, visit the National Student Loan Database System for Students and select “Financial Aid Review” for a list of all federal loans made to you. (Enter in your Social Security # and your PIN issued by the Dept of Education) Click each individual loan to see who the servicer is for that loan (this is the company that collects payments from you). It’s very important to know your servicer. This might be a different company from the original lender.

When Your Social Security Benefits Are Taken to Pay Back Money to the Federal Government
What type of benefits can be taken and how much. Applies only to federal agencies and the IRS may be able to take more than other agencies can.

Loan Discharge After 25 Years On Income Contingent Plan (Google)
Only For Certain Loans.

When You Can't Pay: Cancellation, Deferment and Forbearance (Nolo.com)
How to postpone payments--and when you can cancel your loans altogether. 

Student Debt Alert
Student Debt Alert is a national campaign led by and for students. Our two main goals: to educate the public about the growing necessity of student loans to pay for college; and to directly address young people's concerns about the burdens of student debt.

Paying Back Your Student Loan
Describes the deferments and cancellations for teaching in low-income schools or shortage areas and connects you to the Direct Loan Program, where you can consolidate your existing loans.  If your loan is in default, our Guide to Defaulted Student Loans can tell you how to get out of default.

Consolidating Your Defaulted Loans (Direct Student Loans) 

Guide To Loan Disputes (US Dept. Of Education)

Loan Cancellation & Discharge (US Dept. Of Education)

Discharging Your Student Loans (FAQs)

Discharging Student Loans In Bankruptcy 

Hardship Discharge & More (Excellent)


Other Problems

Help! I've Already Paid Off My Student Loan (Nolo.com)
What to do if the Department of Education demands payment on a loan you've paid off. 

Student Loan Collections (Nolo.com)
What might happen if you fall behind on your payments. 

Getting Out of Default (Nolo.com)
How to rehabilitate your loans and get back on your feet.  

Getting Out Of Default (US Dept. Of Education)

Guide To Loan Disputes (US Dept. Of Education)

Avoiding Late Payments  (Consumer-SOS)

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Financial Aid Resources

Note, that not all schools qualify for federal loans and grants. Call this organization to find out which schools qualify for federal aid and which do not.  They will also tell you what colleges can and cannot do in regards to loans, grants and work-study programs.  You can even get the applicable regulation so you can quote it to your advisor or financial aid office.  For example, did you know that you are entitled to a copy of your expected award before the financial aid disburses your money?   Such is extremely important if you need to challenge your award or file an appeal.

Contact their consolidation department to find out how to best consolidate your loans.  They even have a borrower tracking service that can locate who is currently serving your loans and whether such are in default.