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FAQ on Fair Treatment

This page answers questions on situations in which you may feel that you have received unfair treatment or were at the mercy of unfair circumstances (by your servicer, your school, the Dept. of Education, etc.). It also includes some common gripes and complaints.

The questions are listed first. For the answer to a question, click on that question.

Other pages in this site have FAQs on other subjects:

I sent in a deferment request and they didn’t defer my loan. What should I do?

It is possible that you don't qualify for any of the payment relief plans. See our Payment Relief page for information on what types of relief are available, what is needed to qualify and how to apply.

Why are you taking my money before I even see it?

The U.S. Department of Education has the authority to deduct money from your income if necessary for collecting a debt. This may happen through tax offset or wage garnishment (or both). For more information, see our Tax Offset/Wage Garnishment page.

My school guaranteed things they couldn't give me. Do I still have to pay? What can I do?

Student loans cannot be discharged because you feel your institution provided a poor education or had unqualified instructors or inadequate equipment. The U.S. Department of Education does not endorse the school's educational programs or guarantee that the school will deliver the services for which a student contracted. Therefore, this discharge cannot be granted if the school did not provide job placement or other services that it promised, or if you were not able to find a job in your field of study. For more information, see our Cancellation/Discharge page.

The Department of Education closed my school, so I'm not paying! What can I do?

If you received a student loan at a school that closed before you completed your studies, you may be eligible for discharge of your loan. For more information, see our Cancellation/Discharge page.

My school closed and I didn't get a degree. Do I still have to pay? What can I do?

If you haven't received a diploma or certificate but have completed all of the coursework for the program, you are not eligible for the discharge. For more information, see our Cancellation/Discharge page.

I didn't get a high-school diploma or GED, so I am not able to benefit from my loan. Do I still have to pay? What can I do?

You may be eligible for a discharge if you did not meet the physical or legal requirements of your state to enroll in the program or work in the career for which you were training, regardless of whether you had a high-school diploma or General Education Diploma (GED).

Why do I have to pay this money back?

Loans, unlike educational grants, must be repaid. After you graduate, leave school, or drop below half-time enrollment, you have six months before you must begin repaying your loans. This is called the "grace period." Your repayment period begins the day after your grace period ends. Your first payment will be due within 60 days after your repayment period begins. It is important to begin repaying as soon as you receive a bill from your lender.

If you have not made payments for 270 days (if you make monthly payments) or 330 days (if your payments are less frequent) your loan will be in default. Student loan default is a very serious situation that requires your immediate attention. Never ignore any delinquency notices you receive from your loan servicer.

Last updated/reviewed August 3, 2007

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