college

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.”

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.

Most Popular

Election 2020: Joe Biden's Tax Plans
taxes

Election 2020: Joe Biden's Tax Plans

With the economy still in trouble, tax policy takes on added importance in the 2020 election. So, let's take a look at what Joe Biden wants to do abou…
October 22, 2020
How to Be Happy (Not Bored!) in Retirement – Starting Today
happy retirement

How to Be Happy (Not Bored!) in Retirement – Starting Today

Here are 12 ways to prepare now for retirement so that you’ll be happy, active, fulfilled and never, ever bored.
October 21, 2020
2 Credit Card Gotchas to Watch Out For
credit cards

2 Credit Card Gotchas to Watch Out For

After an infuriating wake-up call with her own credit card company, one financial services consultant wants consumers to know something: It’s smart to…
October 20, 2020

Recommended

File the FAFSA Now: Urgent Reasons for Families to File Early in 2020 for College Aid
college

File the FAFSA Now: Urgent Reasons for Families to File Early in 2020 for College Aid

If you have a college-bound student at home, don't procrastinate on securing financial aid for the 2021-22 school year.
October 9, 2020
FAQs on CARES Act Relief for Student Loan Borrowers
student loans

FAQs on CARES Act Relief for Student Loan Borrowers

Here’s how to know if you qualify – and how you should take advantage.
September 21, 2020
Back in School Decades Later
Empty Nesters

Back in School Decades Later

Getting a degree or certificate in retirement or later in life can have its advantages.
September 2, 2020
Stay on Course With Student Loans
Paying for College

Stay on Course With Student Loans

You may be eligible for deferment if you receive unemployment benefits or are unable to find a full-time job.
August 27, 2020