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Payment Issues FAQ

This page answers questions about issues of loan repayment, bankruptcy, and how you may (if appropriate) get your loan cancelled, out of default, deferred, or discharged.

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

Other pages in this site are FAQs on other subjects:

I can't afford my loan payment. What are my options?

If you have trouble making your student loan payments, contact your loan servicer immediately. You may find that you qualify for a deferment, forbearance, or other form of payment relief, or even that you meet a condition under which your loan can be cancelled or discharged. Alternatively, if you have several loans you may want to consider consolidating them. Regardless, it's important to take action before you incur late fees or your credit is affected.

My loan was paid by my bankruptcy trustee, or my loans were discharged in bankruptcy. Why am I still being billed?

If you filed Chapter 7 or Chapter 13 bankruptcy after October 7, 1998, your loan is not dischargeable unless the bankruptcy court finds that repayment would impose undue hardship on you and your dependents. For more information see Bankruptcy.

Can I get some of my loan cancelled?

Several situations might allow you to have your loan cancelled or discharged. For example, certain types of cancellations are available to military personnel, teachers, nurses, and child care providers. To learn whether you meet any of those conditions and to find out what to do next, see Cancellation and Discharge.

Why can’t the Department of Education discharge my loan the way HHS did?

The provisions for the U.S. Department of Education are different and more stringent than for most other government benefits programs because it involves the one-time elimination of a government debt. For more information regarding cancellation or discharge of your student loan, see Cancellation and Discharge.

How can I get my loans out of default?

Fortunately, you have several options for getting your loan out of default. These include loan repayment, loan rehabilitation, loan consolidation, and, if you qualify, payment relief.

How can I postpone payments?

If you have trouble making your student loan payments, contact your loan servicer immediately. You may be able to work out an arrangement in which you can defer or postpone your loan. For more information see payment relief.

I'm disabled and I believe I should have my loan discharged or I can’t afford to pay my loan back. What can I do?

Loans can be cancelled, or discharged if you are totally and permanently disabled. There are, however, conditions for eligibility and you will need to provide the necessary documentation. For more information see Cancellation and Discharge.

Can I pay less than amount due on my account?

You may want to consider looking into some type of payment relief through graduated payment plans or through income-sensitive payment plans.

I'm experiencing a hardship. Can I get part of my tax offset back?

If the offset of your federal tax refund creates a severe hardship for you, it is possible to request a refund of your offset from your guaranty agency. For examples and additional information, see Tax offset and Wage garnishment.

I wasn't old enough to borrow this money. Do I still have to pay?

You may also be eligible to have your loan discharged 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) . To learn more about how to cancel or discharge a loan, see Cancellation and Discharge.

I can't get a job (in my chosen field of study) (provisions of deferment). Do I still have to pay?

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 about what does qualify as a condition of loan cancellation or discharge, see Cancellation and Discharge.

I signed a promissory note but I didn't attend class. Do I still have to pay?

Unfortunately, if you did sign the note then you are responsible for payment. . For more information about what does qualify as a condition of loan cancellation or discharge, see Cancellation and Discharge.

Last updated/reviewed August 3, 2007

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