04.18.08 | Stafford and Plus Loan Forgiveness
People say to me Dave, because that’s my name, they say Dave can I have a portion of my federal
I figured since I’ve been fielding this question a lot recently it might be a good idea to publish the bible you see below for your benefit. Bathe in my knowledge.
|
Discharge / Forgiveness Condition |
Amount Discharged / Forgiven |
Notes |
|
Borrower’s total and permanent disability or death |
100 percent |
For a PLUS Loan, includes the death, but not disability, of the student for whom the parents borrowed |
|
Full-time teacher for five consecutive years in a designated elementary or secondary school serving students from low-income families. Must meet additional eligibility requirements. |
Up to $5000 (up to $17,500 for teachers in certain specialties) of the total loan amount outstanding after completion of the fifth year of teaching. Under the Direct and FFEL Consolidation Loan programs, only the portion of the consolidation loan used to repay eligible Direct Loans of FFEL Loans qualifies for loan forgiveness |
For Direct and FFEL Stafford Loan borrowers with no outstanding balance on a Direct or FFEL Loan on the date they received a loan. PLUS Loans are not eligible. At least one of the five consecutive years of teaching must occur after the 1997-98 academic year. To find out whether your school is considered a low-income school, go to www.FederalStudentAid.ed.gov Click on “Students, Parents and Counselors,” or call 1-800-4-FED-AID |
|
Bankruptcy (in rare cases) |
100 percent |
Cancellation is possible only if the bankruptcy court rules that repayment would cause undue hardship. |
|
Closed school (before student could complete program of study) or false loan certification. |
100 percent |
For loans received on or after January 1, 2006. |
|
False loan certification now includes identity theft |
100 percent |
Effective July 1, 2006 |
|
School does not make required return of loan funds to the lender |
Up to the amount that the school was required to return. |
For loans received on or after January 1, 1986. |
Information provided by the Department of Education.
i read your thread. i have sub and unsub loans from undergrad and graduate coursework, .will thses loans be paid in full upon my death?
April 24th, 2008 | #
I need the hardship forebearance form. Please
acct #511-80-1510
May 31st, 2008 | #
While my sons pursued their education, I signed PLUS loans for them with the understanding that they and their father would make the payments. However, their father and I divorced. He’s thumbed his nose at the payments and neither of our sons are able financialy to contribute yet. In addition a consequent move and change in jobs has dropped my annual income to $32,000. There is no way I can make this $440 per month payment, my own school loan payment and regular monthly bills. Is there a way that I can make reasonable payments without moving into a cardboard box?
July 12th, 2008 | #