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

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1.
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.
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.
Which is true regarding wage garnishment to repay federal student loan debt?
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Federal garnishment is limited to 15% of your disposable income. It is also limited to no more than 30 times the federal minimum wage.
4.
If you serve in the US military, you may be able to cancel your student loan.
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True. This might also be possible if you serve in certain other federal-level services.
5.
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.