Federal Student Loan Counseling |
Federal Student Loan Deferment
Unfortunately sometimes circumstances arise which make it difficult to repay your loan. If you find yourself in this situation, contact your lender immediately. Most lenders should be willing to work with you. The lender may be able to grant you either a deferment, forbearance, or cancellation. Remember until a deferment or forbearance is granted, you must continue to make your monthly payments to avoid ending up in default.
It is your responsibility as the borrower to initiate the process of deferment, forebearance or cancellation.
A deferment means that the loan repayment is temporarily postponed. If the loan is subsidized there will be no interest charged during the deferment period. Interest on an unsubsidized loan will continue to be charged.
A forbearance is a temporary postponement or reduction of loan payments for a limited and specific period. You may qualify for a forbearance if you are willing but unable to make loan payments due to acceptable reasons, and do not meet a deferment condition. During a forbearance, interest may be charged on both subsidized and unsubsidized loans.
Loan Discharge/Forgiveness/Repayment
You are generally obligated to repay your student loan(s) regardless of what happens. However, there are a few situations in which you loan(s) may be discharged and your repayment obligation cancelled. Your Federal student loan(s) may be discharged or forgiven, in whole or part, if:
You are totally and permanently disabled.
You are unable to complete your program of study due to the closing of your school.
Your school falsely certified your loan eligibility due to an unauthorized or forged signature on documents for loan funds from which you did not benefit, due to disqualifying status or your ability to benefit, or if your school failed to refund required loan funds to your lender on your behalf.
Your loan was falsely certified as a result of the crime of identity theft.
Your loan is discharged in bankruptcy. (Available under limited circumstances).
You are eligible for the Teacher Loan Forgiveness Program or Service in Areas of National Need Loan Forgiveness Program.
You are eligible for the Civil Legal Assistance Attorney Loan Repayment Program.
You are eligible for loan forgiveness under Income-Based Repayment.
You are employed in a public service job and consolidate your Federal Family Education Loan Program (FFELP) loans into a Direct Consolidation Loan and participate in the Loan Forgiveness Program for Public Service Employees.
You are deceased.
In order to complete your loan counseling session, it is important that you read all of the provided information. You will then need to complete the form at the end of the six information pages provided.
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