Attorneys from the Department of Justice presented a program on student loan debt.
The presenters were government attorneys who usually fight discharge of student loans but, they presented lots of information on other ways to deal with repayment.
Contact the ombudsman! was a recurrent theme.
The Federal Student Aid Office can provide help on how to clarify student loan deferment, forbearance, and even discharge. They can help you identify your loan repayment options, resolve discrepancies over payments made and balances owed on loans, among other things.
The government actually says that, if you die, you do not have to pay back student loan debt, but, there are some forms that your survivors will have to complte.
“Which loan program am I in?” may well be your first question.
You have to know exactly which program before you can figure out your options.
Higher Education Act, Federal Family Education Loan Program, Federally Insured Student Loan Program, Stafford loansPerkins loans, William D. Ford direct loans, PLUS loans and more.
Strangely, student loan deferment or forbearance are only available for loans which are not in default at the time of application for deferment or forbearance. So get started while you are still in good standing if you are going to look for help.
Your loan can be rehabilitated, or re-financing or consolidated, if you do default, which brings the loan back out of default status.
So, if at all possible, if you can’t pay your loan, best to figure that out before you fall behind on the payments.
Forbearance is a modification of the payment terms but is always temporary.
Deferment is a suspension of your obligation, nothing goes away, but your payments stop for a time.
For deferments for government subsidized Stafford loans, as an example of the differences in how different loan programs are treated: the government pays the interest that accrues during the time of the deferment.
