Who to contact about consolidating student loans
Unpaid refund You can apply for unpaid refund loan cancellation if you left school early.If you went to school for less than 60 percent of the loan repayment period, you should have received a refund for at least some of what you borrowed.You can have your federal student loans canceled for school-related reasons, such as your school closing, or in the event of disability or death. Department of Education will accept payment in the form of checks, money orders or credit or debit cards.Learn more » You could choose to pay the full amount of what you owe on your loan to get out of default. Learn more » On this page, we write exclusively about getting out of default on your Federal Direct and FFEL student loans.The first three false certification categories: Ability to Benefit, Disqualifying Status and Forgery apply only to FFEL and Direct loans received at least in part on or after January 1, 1986.
In some circumstances, whether your loan is in default or not, you might be eligible to have your federal student loans canceled entirely.If you don’t want to make three voluntary payments, you can still consolidate your loans if you agree to enter into an income-driven repayment plan. To rehabilitate a federal student loan, you and the Department of Education must reach an agreement on a “reasonable and affordable” repayment plan in which you’ll have to make nine out of 10 on-time payments.Any garnished wages, tax returns or social security earnings will not count toward these payments.Student loan cancellation is often limited to very specific situations, but in those situations, the option is required by federal law to be available to debtors.You may not cancel your student loan based on dissatisfaction with your college, the degree you received or your job placement prospects after graduation.
It’s important to note that loan cancellation is not the same as bankruptcy.