Student Loan Cancellation 911
Even when your intentions are good, a lot can go wrong in life.
Understand how loan cancellation provisions can help you…
Federal student loans offer several loan cancellation provisions for the following reasons:
Closed School Discharge-Your college closes while you were attending, or 90 days after withdrawal.
Unpaid Refund-If you withdrew and the college owed you or the lender a refund, but never returned the funds to the lender.
False Certification Discharge-Improper certification of the ability to benefit from college or for victims of identity theft.
Death Discharge-If the borrower (parent), or student for whom the parent borrowed a Parent PLUS loan dies.
Total and Permanent Disability Discharge-Through a doctor’s certification, a borrower is totally and permanently disabled, or if a veteran is unemployable due to service related injuries or condition.
Please contact the lender immediately if you have any one of the above situations. For more information about this subject, and student loan repayment, see FastWeb and Student Loan Repayment 411, the previous blog.
Note: Don’t confuse “Loan Cancellation” with “Loan Forgiveness”, they are two different things. “Public Service Loan Forgiveness” was discussed in the Student Loan Repayment 411 blog.
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