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Education Intermediate: Deferring, Cancelling, or Defaulting on Your Student Loans

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1.
Which of the following is a valid reason to request a student loan deferment?
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Economic hardship, such as unemployment. Returning to school also qualifies.
2.
The government's student loan collection methods are varied, but the government may not touch an anticipated tax refund.
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False. This is a popular method of collecting on defaulted loans.
3.
Student loans are seldom discharged in bankruptcy.
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True. Discharge may be possible if you can prove that repaying the loan would be a severe hardship.
4.
Student loan forbearances are harder to obtain than deferments.
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False. They are not governed by the many rules that make cancellations and deferments difficult.
5.
You can cancel a federal student loan on the basis of _______ disability.
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Permanent. A permanent disability might mean you can never work again; that can qualify you for cancellation of your loans.