Getting Your Student Loan Cancelled
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Getting Your Student Loan Cancelled
Deferment of a student loan is nice, but getting it cancelled is a dream come true for a lot of graduates. But it’s not as easy as a deferment, and you can’t always get the entire loan balance cancelled. In most cases, the government wants something from you in return.
Things To Know
- Cancellation is relatively difficult to do.
- Performing community service can get your loans cancelled.
What qualifies you for a cancellation?
Here are a number of situations that can get you a cancellation on a federal loan (and some non-federal loans):
- Disability. If you have a disability that prevents you from working, and it is permanent, you can cancel your loans. You will have to prove that you are permanently disabled.
- Public service. Performing community service can get your loans cancelled. There are many opportunities available, from local ones such as assisting low-income people to volunteer opportunities on the national level. Serving in the military or certain other federal services can qualify you for a cancellation also.
- Your job. If you work in law enforcement or corrections, you can get some loans cancelled. You may also qualify for a cancellation if you work as a teacher serving certain needy populations, such as the disabled. Also, working in certain healthcare and medical workers can get you a cancellation.
- School closings. In some cases, if you are enrolled in a school that closes before you can get your degree, you can cancel your loan.
- September 11. Certain victims and their relatives can qualify for cancellation of their loans.
- Bankruptcy. This is a long shot and is very hard to do because student loans are normally exempt from bankruptcy. But if you can demonstrate to a court of law that the loan would cause a major hardship for you, you might get it discharged. But first, your financial state and your past efforts to repay the loans will be scrutinized by the court.
- Death. If you die, your loan can be cancelled by the executor of your estate.
These are general guidelines. Some of them are based on specific requirements that you must first meet. Contact your lender for more information.