Government Student Loans

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Sakem

New member
Student Loan discharge is very hard to get, but it is possible. I've always heard that the worst loan to not pay is a student loan, because they do not go away and can always be collected on and they have a lot more avenues to collect from.

With all the recent loan defaults/forclosures in the country I could see the loan approval process changing. I could see it becoming like other insurance. Like with life insurance, being required to a physical and disclosing chronic medical problems. I think this is standard practice in some european places with mortgage notes. Not that I agree with it, but it makes sense. Why are you going to give someone in their 20s this large loan and tell them they can repay it over the next 20 or 30 years, when the odds are they will not live that long.
 
S

Sakem

New member
Student Loan discharge is very hard to get, but it is possible. I've always heard that the worst loan to not pay is a student loan, because they do not go away and can always be collected on and they have a lot more avenues to collect from.

With all the recent loan defaults/forclosures in the country I could see the loan approval process changing. I could see it becoming like other insurance. Like with life insurance, being required to a physical and disclosing chronic medical problems. I think this is standard practice in some european places with mortgage notes. Not that I agree with it, but it makes sense. Why are you going to give someone in their 20s this large loan and tell them they can repay it over the next 20 or 30 years, when the odds are they will not live that long.
 
S

Sakem

New member
Student Loan discharge is very hard to get, but it is possible. I've always heard that the worst loan to not pay is a student loan, because they do not go away and can always be collected on and they have a lot more avenues to collect from.

With all the recent loan defaults/forclosures in the country I could see the loan approval process changing. I could see it becoming like other insurance. Like with life insurance, being required to a physical and disclosing chronic medical problems. I think this is standard practice in some european places with mortgage notes. Not that I agree with it, but it makes sense. Why are you going to give someone in their 20s this large loan and tell them they can repay it over the next 20 or 30 years, when the odds are they will not live that long.
 
S

Sakem

New member
Student Loan discharge is very hard to get, but it is possible. I've always heard that the worst loan to not pay is a student loan, because they do not go away and can always be collected on and they have a lot more avenues to collect from.

With all the recent loan defaults/forclosures in the country I could see the loan approval process changing. I could see it becoming like other insurance. Like with life insurance, being required to a physical and disclosing chronic medical problems. I think this is standard practice in some european places with mortgage notes. Not that I agree with it, but it makes sense. Why are you going to give someone in their 20s this large loan and tell them they can repay it over the next 20 or 30 years, when the odds are they will not live that long.
 
S

Sakem

New member
Student Loan discharge is very hard to get, but it is possible. I've always heard that the worst loan to not pay is a student loan, because they do not go away and can always be collected on and they have a lot more avenues to collect from.
<br />
<br />With all the recent loan defaults/forclosures in the country I could see the loan approval process changing. I could see it becoming like other insurance. Like with life insurance, being required to a physical and disclosing chronic medical problems. I think this is standard practice in some european places with mortgage notes. Not that I agree with it, but it makes sense. Why are you going to give someone in their 20s this large loan and tell them they can repay it over the next 20 or 30 years, when the odds are they will not live that long.
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<br />
 
J

julie

New member
Yes this is correct, government funded loans can be forgiven if you have a disability. There is some specific criteria, but Mark's doctor just wrote a letter and they stopped billing us and the balances stopped accruing interest.

The catch is that you have to earn under the Federal Poverty for a household of 2 people (REGARDLESS of your actual household size) for 3 years. After those 3 years it is 100% forgiven.

Unfortunately for Mark, he ended up needing to go back to work full time when we weren't living together anymore and was 2 years and 5 months into his 3 year wait. So his have all come due again, but with NO interest accrual

Hope this helps
 
J

julie

New member
Yes this is correct, government funded loans can be forgiven if you have a disability. There is some specific criteria, but Mark's doctor just wrote a letter and they stopped billing us and the balances stopped accruing interest.

The catch is that you have to earn under the Federal Poverty for a household of 2 people (REGARDLESS of your actual household size) for 3 years. After those 3 years it is 100% forgiven.

Unfortunately for Mark, he ended up needing to go back to work full time when we weren't living together anymore and was 2 years and 5 months into his 3 year wait. So his have all come due again, but with NO interest accrual

Hope this helps
 
J

julie

New member
Yes this is correct, government funded loans can be forgiven if you have a disability. There is some specific criteria, but Mark's doctor just wrote a letter and they stopped billing us and the balances stopped accruing interest.

The catch is that you have to earn under the Federal Poverty for a household of 2 people (REGARDLESS of your actual household size) for 3 years. After those 3 years it is 100% forgiven.

Unfortunately for Mark, he ended up needing to go back to work full time when we weren't living together anymore and was 2 years and 5 months into his 3 year wait. So his have all come due again, but with NO interest accrual

Hope this helps
 
J

julie

New member
Yes this is correct, government funded loans can be forgiven if you have a disability. There is some specific criteria, but Mark's doctor just wrote a letter and they stopped billing us and the balances stopped accruing interest.

The catch is that you have to earn under the Federal Poverty for a household of 2 people (REGARDLESS of your actual household size) for 3 years. After those 3 years it is 100% forgiven.

Unfortunately for Mark, he ended up needing to go back to work full time when we weren't living together anymore and was 2 years and 5 months into his 3 year wait. So his have all come due again, but with NO interest accrual

Hope this helps
 
J

julie

New member
Yes this is correct, government funded loans can be forgiven if you have a disability. There is some specific criteria, but Mark's doctor just wrote a letter and they stopped billing us and the balances stopped accruing interest.
<br />
<br />The catch is that you have to earn under the Federal Poverty for a household of 2 people (REGARDLESS of your actual household size) for 3 years. After those 3 years it is 100% forgiven.
<br />
<br />Unfortunately for Mark, he ended up needing to go back to work full time when we weren't living together anymore and was 2 years and 5 months into his 3 year wait. So his have all come due again, but with NO interest accrual
<br />
<br />Hope this helps
 
S

Shaunessy

New member
Jake and I both have Stafford subsidized loans. Jake is on SSDI and hasn't worked in a few years. His loans were deferred while he was on SSI and then for unemployment. They're going to become active again next month which I'm not looking forward to. I was planning to do an income-dependent repayment plan that would stretch them out over a longer period and eventually try for discharge. I'll look into the disability discharge rules too though.

What type of loans do you have? Are you doing the normal, full payments?
 
S

Shaunessy

New member
Jake and I both have Stafford subsidized loans. Jake is on SSDI and hasn't worked in a few years. His loans were deferred while he was on SSI and then for unemployment. They're going to become active again next month which I'm not looking forward to. I was planning to do an income-dependent repayment plan that would stretch them out over a longer period and eventually try for discharge. I'll look into the disability discharge rules too though.

What type of loans do you have? Are you doing the normal, full payments?
 
S

Shaunessy

New member
Jake and I both have Stafford subsidized loans. Jake is on SSDI and hasn't worked in a few years. His loans were deferred while he was on SSI and then for unemployment. They're going to become active again next month which I'm not looking forward to. I was planning to do an income-dependent repayment plan that would stretch them out over a longer period and eventually try for discharge. I'll look into the disability discharge rules too though.

What type of loans do you have? Are you doing the normal, full payments?
 
S

Shaunessy

New member
Jake and I both have Stafford subsidized loans. Jake is on SSDI and hasn't worked in a few years. His loans were deferred while he was on SSI and then for unemployment. They're going to become active again next month which I'm not looking forward to. I was planning to do an income-dependent repayment plan that would stretch them out over a longer period and eventually try for discharge. I'll look into the disability discharge rules too though.

What type of loans do you have? Are you doing the normal, full payments?
 
S

Shaunessy

New member
Jake and I both have Stafford subsidized loans. Jake is on SSDI and hasn't worked in a few years. His loans were deferred while he was on SSI and then for unemployment. They're going to become active again next month which I'm not looking forward to. I was planning to do an income-dependent repayment plan that would stretch them out over a longer period and eventually try for discharge. I'll look into the disability discharge rules too though.
<br />
<br />What type of loans do you have? Are you doing the normal, full payments?
 
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