Relief for Student Borrowers
These workarounds may help borrowers who are ill, whose school closed, or who have other college debt issues.
As college costs and student-loan interest rates continue to rise, many graduates and former students are struggling to repay their student loans. But new federal and state offerings are providing some borrowers in difficult situations with ways to avoid default.
Borrowers undergoing treatment for cancer can now defer payments on their federal direct loans during their treatment, without accruing interest on the loans. If you qualify, contact the company that services your loans to request a deferment. You may need to provide a letter from your oncologist.
Students who were enrolled at a college that closed may qualify to have their federal loan balance expunged. Roughly 15,000 borrowers who attended schools that shuttered from late 2013 to 2015 recently had their federal debts canceled. Students generally had to be enrolled at a now-defunct institution when it closed (or shortly before) without enrolling in another school for three years. For more details, visit studentaid.ed.gov and search “closed school discharge.”
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Your state may also be able to help. In recent years, several states, including California, Connecticut and Washington, have enacted legislation to protect student-loan borrowers or provide an ombudsman to help borrowers who are in trouble.
-
Stocks Chop as the Unemployment Rate Jumps: Stock Market TodayNovember job growth was stronger than expected, but sharp losses in October and a rising unemployment rate are worrying market participants.
-
Should You Renew Your CD?With rate cuts impacting earnings, we examine if now is a wise time to renew CDs.
-
7 Ways to Plan Now to Save on Medicare IRMAA Surcharges LaterUnderstand the critical two-year lookback period and why aggressive planning before you enroll in Medicare is the most effective way to minimize IRMAA.
-
Amazon Resale: Where Amazon Prime Returns Become Your Online BargainsFeature Amazon Resale products may have some imperfections, but that often leads to wildly discounted prices.
-
Roth IRA Contribution Limits for 2026Roth IRAs Roth IRAs allow you to save for retirement with after-tax dollars while you're working, and then withdraw those contributions and earnings tax-free when you retire. Here's a look at 2026 limits and income-based phaseouts.
-
Four Tips for Renting Out Your Home on Airbnbreal estate Here's what you should know before listing your home on Airbnb.
-
Five Ways to a Cheap Last-Minute VacationTravel It is possible to pull off a cheap last-minute vacation. Here are some tips to make it happen.
-
How Much Life Insurance Do You Need?insurance When assessing how much life insurance you need, take a systematic approach instead of relying on rules of thumb.
-
When Does Amazon Prime Day End in October? Everything We Know, Plus the Best Deals on Samsonite, Samsung and MoreAmazon Prime The Amazon Prime Big Deal Days sale ends soon. Here are the key details you need to know, plus some of our favorite deals members can shop before it's over.
-
How to Shop for Life Insurance in 3 Easy Stepsinsurance Shopping for life insurance? You may be able to estimate how much you need online, but that's just the start of your search.
-
Five Ways to Shop for a Low Mortgage RateBecoming a Homeowner Mortgage rates are high this year, but you can still find an affordable loan with these tips.
