Thursday 14 December 2017
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Help for Federal Student Loans, payments reduction options, Borrowers Defense to Repayment elegibilty

Help for Federal Student Loans, payments reduction options, Borrowers Defense to Repayment elegibilty

If you currently have a Federal Student Loan, and can not keep up with your payments there are options available that private student loans dont offer.

Always listen to the Department of Education or The Consumer Financial Protection Bureau, Two government websites,  and not other companies advertisements offering help, there is alot of mis information swirling these issues.  Get the facts from the Agencies who know them best.


You can Switch your repayment plan, the standard pay back plan is 10 years.

There are 3 income-driven repayment plans:

  1. pay as you Earn
  2. Income – based
  3. Income – Contingent

Apply for Direct Consolidation loan, postponing your payments, under certain circumstances , you can recieve a deferment of forbearance.

Click Here for all the details 


Great Blog offers great explanations upon the adverse effects of the above mentioned options.  Must Read, remember Knowledge is Power

Click Here

This same website has a post Loans come in all shapes and sizes, and the regulations for each of them can be different as well.  Find out the differences and find out the type of loan you have and what regulations there are.

Click Here for Loan Regulations


The Consumer financial Protection Bureau also has a post on this issue offering help to students who are consumed in their Federal Student Loans

Click Here 


Some Borrowers may be eligible for forgiveness of the Federal Student loans used to attend school, if that school mis led them or engaged in other mis conduct in violation of certain laws. Now notice the vaugness here.  read other article i am posting down below to get a better understanding, yes this link is the avenue to submit an application, but note and think about your situation

Here are some excepts I found and took notes on.  If you attended a school and you feel it commited fraud by doing something, or failing to do something misrepresented its services , or other wise violated applicable state law related to your loans or the educational services you paid for. 

If you believe any of that happened to you , you can draft an explanation to the Dept of Education “Link provided below”, You need to do your own research and this website has more on how to do that which I also will provide a link, you yourself need to identify what state laws were violated, and how the school specifically commited fraud. You will not have to make payments during the time the Borroweres Defense Application is being considered. Once you submit your request you will have to sit tight till they reach a final ruling.

Ask the lender what the FAFSA School code was at the time attended,  Assigned by the Department of Education.  This is very important to finding laws they may have broke.  Let me explain, There are multiple law suits on going and pending at this time.  Read my Posts on this topic, but for now the reason this is so important is many schools have been found guilty of saying they where eligable for and participating in The Title 5 Lending program, also know as the Higher Education Opportunity Act, when in fact they were not. Many schools have been accused of illegal recruiting techniques and high pressure tatics to enroll new students.

The Higher Education and Opportunity Act originally enacted in 1965, then changes in 1998, again in 2003, in 2008 reauthorization,

Click Here This is the acual public law on the updated 2008 Higher Education Opportunity Act

this may be hard to understand , but just browse for topics discussed that you feel pertain if at all to your situation.

Click Here      to see if your school claimed to be at the time you applied on your first FAFSA report a title five recipient, note you can also call and ask your loan provider, servicer yourself, dont take no for an answer, there is much caution to be used because their are lawsuits settled out of court or now pending for some schools who claimed they were qualified schools under the Title 5 Higher Education Opportunity Act.

Click Here for application


Now lets keep in mind the Department of Education will recieve all this information and perhaps help some students but it will also compile needed proof for perhaps their own law suit against some schools as is what is rampetly what is happening in the last few years, if you really feel strong about your circumstances , contact an attorney of your choice specializing in these types of class action suits or your own individual chances.