How Not to Pay Back Your Student Loan

Is there ever a chance you will not have to pay back your student loans? The answer is: YES!
Depending on the type of student loan you have and when you obtained it, you may be able to cancel all or a portion of your loan under one of the following circumstances:

* The former student for whom the loan was taken has died.
* You become totally and permanently disabled.
* Your school closed before you could complete your program of study.
* Your school falsely certified that you were eligible for a student loan.
* You left school and were entitled to a refund but never received the money.
* You teach in a Department of Education-approved school serving low-income students or in designated teacher shortage areas (other types of teacher cancellations are available for Perkins loans).
* You serve in the U.S. military (partial cancellation for Perkins loans only).
* You're a full-time employee of a public or nonprofit agency providing services to low-income, high-risk children and their families (Perkins loans only).
* You're a full-time nurse or medical technician (Perkins loans only).
* You're a full-time law enforcement or corrections officer (Perkins loans only).
* You're a full-time staff member in a Head Start program (Perkins loans only).
* You are a Peace Corps or VISTA volunteer (Perkins loans only).

These circumstances apply mainly to federally funded student loans. Other lenders, however, may extend the same courtesy to you if you discuss it with them. They are not required to do so, but asking does not hurt.

Keep in mind that should the circumstances above change, you will most likely be asked to repay your loan. Find out beforehand what the exact conditions of the loan forgiveness entails. Doing so will help lessen any surptises in the future.

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What are student loans?

There is a myth that only the rich can afford to get a college education. This could not be further from the truth. The sad truth is that in today’s highly technical and fast paced society, a college education is a vital necessity. Even the simplest of tasks is becoming computerized to a point that it takes specialized training to operate the equipment. By the time most middle and high school children reach graduation, even a janitors position will be in need of a two or four year degree.
When one mentions a college education the first thought is some big foreboding university and four years of either drudgery or partying. There are, however many new fields of study opening up that require only an Associates degree. But, even though these are earned at community colleges, there are still expenses to be paid. Most of the two year programs are at colleges that are accredited. This accreditation allows students to apply for the same grants, scholarships and loans that would be applicable to the four-year institutions.
Student loans are monies that are borrowed at a lower interest rate than traditional loans. Many of the requirements for loans other than college require good credit ratings and often some form of security. A student loan is the only loan one can get that does not required the person to be gainfully employed. The repayment period is also not started until the person completes their education or leaves school for any other reason. There is an automatic six-month grace period.
Depending upon the type of loan the interest may or may not accumulate from the release of the funds. Some of the loans go directly to the college or educational institution and others are awarded to the student directly.

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