When You Can’t Afford Your Payments

When You Can’t Afford Your Payments
Even if you aren’t having trouble affording your payments right now, life is unpredictable, so it’s always wise to know what your options are in the event that you need some extra help. If you are having trouble making your monthly payments, or you anticipate that you will have trouble in the near future, contacting your loan servicer to see what your options are should be your first step. You may be eligible for a period of deferment or forbearance which can help you through a time of difficulty, and prevent your loan from sliding into delinquent or default status.

Note: Only federal student loans are eligible for these benefits. If you have a private student loan and are having trouble making your payments, contact your lender to find out what your options are.Big Boss vote

Borrower Defense Discharge

Borrower Defense DischargeIf you attended college and received federal student loans, and believe that your school defrauded you, misrepresented its services, or in some way violated applicable state law, you may submit a claim to have your student loans discharged.
Example: A situation that might result in a Borrower Defense Discharge, is if a school were to grossly misrepresent its job placement rates (such as the situation with the Corinthian Colleges).
If you believe you were a victim, you may submit a claim via email to FSAOperations@ed.gov. Be sure to include pertinent personal information like your dates of enrollment. Also elaborate on any details about the conduct of the school that you believe violated the state law, including:

Perkins Loan Cancellation and Discharge

Perkins Loan Cancellation and Discharge
You may qualify for a partial or full cancellation of your Perkins Loan if one of the following describes you:

A volunteer in the Peace Corps or ACTION program (including VISTA)
A Teacher
A Member of the U.S. Armed Forces (if you serve in an active combat situation)
A Nurse or medical technician
Law enforcement or corrections officer
Head Start worker

Eligibility Requirements for Non-Prior Service Soldiers

Eligibility Requirements for Non-Prior Service Soldiers

• Enlist for a minimum of six years
• Enlist for a critical skills vacancy (grade of E4 or below)
• Enlist into a qualifying position in a MTOE or medical TDA unit only
• Score a minimum of 50 on the Armed Forces Qualifying Test
• Cannot enlist as a 09R SMP cadet
• Cannot be enlisting in the RFP or Active First Program
• Must not enlist as a glossary non-prior service soldier

To see the other eligibility requirements, or for answers to other questions, 

Private loans cannot be repaid under this program. Qualifying loans include:

College Loan Repayment Program (LRP)

For soldiers who enlist with student loan debt, the LRP program will repay 33 ⅓% of qualifying student loans or $1,500, whichever is greater, after each year of service for a total of three years (up to $65,000 minus taxes).

Private loans cannot be repaid under this program. Qualifying loans include:

• Direct Loans
• FFEL Loans
• PLUS Loans
• Supplemental Loans for Students (SLS)

Additional eligibility requirements include:

• You must agree to a three-year term of service.
• You must decline eligibility for the Montgomery GI Bill.
• You must have the LRP guaranteed in writing in your enlistment contract.
• This must be your first term of enlistment with the Army.
• You must have a high school diploma and score a 50 or higher on the Armed Services Vocational Aptitude Battery (ASVAB).
• You must enlist in one of the critical Military Occupational Specialties (recruiters have access to this list which changes quarterly).

For more information on either of these programs go to GoArmy.com.