The Best Loan Resource » Perkins Loan http://www.bestloanson.com The Best Loan Resource Sat, 17 Dec 2011 10:37:36 +0000 http://wordpress.org/?v=2.8.6 en hourly 1 Discharging Your Student Loans http://www.bestloanson.com/discharging-your-student-loans/ http://www.bestloanson.com/discharging-your-student-loans/#comments Fri, 18 Jun 2010 15:47:38 +0000 admin http://www.bestloanson.com/discharging-your-student-loans/

Under very special provisions, it is sometimes possible for a student to have his or her loan discharged or canceled. There are strict qualifications and specifics on how a student can receive a student loan discharge, as well as specific steps to follow in order to apply for one.

A student loan can be discharged if the student dies or becomes permanently disabled. With respect to parent loans, it is the student for whom the money was borrowed who most die and not either of the parents. To receive a student loan discharge because of death, then one of two things must happen, depending on the type of loan in question. If the loan is a Perkins Loan, a death certificate for the student must be presented to the university from which he or she graduated. In the case of Stafford Loans, a death certificate must be presented to whoever holds the loan.

As it applies to a student loan discharge, to be completely and permanently disabled is defined as being unable to work and make money due to an injury illness which is expected to last indefinitely or end in death. However, in 2002, this criterion was amended to state that those who qualify for a disability discharge would receive only a conditional cancellation, intended to last for three years from the date a student becomes disabled. If, during that span, the student continues to remain within the qualifications of complete and permanent disability, then the loan will be canceled. If the student fails to continue to meet the conditions, the loan will go back in effect. In order to be approved for a disability discharge, the student must submit a statement from a doctor which states that he or she is completely disabled according to the lender’s definition.

In certain cases, a student can receive a student loan discharge if his or her school closes. If the university closes while a student is enrolled at least part-time, then loans which were received through the Department of Education can be discharged. Anyone on an approved leave of absence is still considered enrolled. Furthermore, if a student has withdrawn and his or her college closes within ninety days after that, he or she may obtain a school loan discharge. However, if a student is pursuing an academic program similar to the one he or she did not get to complete when the other school closed, the student is no longer eligible. Moreover, if he or she receives a discharge and then pursues a comparable program, then he or she could be made to pay back the amount of loans discharged.

Students may also qualify for student loan discharge if his or her loan was approved and allowed even though he or she did to meet the requirements necessary to get into the university or to proceed with the degree for which he or she selected. Provided that the school did not provide the student with the classes necessary to otherwise meet those requirements – not offering remedial course work to a student without a diploma or GED – then the student may qualify for a discharge. As of 2006, students also qualify for a discount if a student’s loan was falsely certified or forged onto a promissory note. Students may also receive a partial discharge, if the lender of their loan owes their school a refund.

There are also discharges for teachers who work in low-income schools, or who otherwise work in designated public school positions. Doctors who practice medicine in rural or low-income areas are another example of this loan discharge.

Finally, in certain cases, if a student files for bankruptcy, he or she may qualify for a student loan discharge. However, this is only if the court decides that paying the student loan payments would create unnecessary hardship. ]]> http://www.bestloanson.com/discharging-your-student-loans/feed/ 0 Consolidate Student Loans – Why, How And When http://www.bestloanson.com/consolidate-student-loans-why-how-and-when/ http://www.bestloanson.com/consolidate-student-loans-why-how-and-when/#comments Tue, 01 Sep 2009 22:26:18 +0000 admin http://www.bestloanson.com/consolidate-student-loans-why-how-and-when/

A student should always, once through college, initiate steps to consolidate their student loans. This article details the benefits available to graduates, parents or students who take those steps.

The Consolidation of Student Loans Brings Reduced Payments

When a student gets all his or her loans under the same Social Security number, then the government will agree to consolidate those student loans. The student’s individual loans are paid off, giving the student one large loan.

Moreover, when the government takes steps to consolidate student loans, it also takes two other important steps: It extends the loan and it lowers the loan rate.

There is not set way by which a loan provider can bring down the rate on a consolidated loan. A reputable loan provider carefully examines all the possible ways that a student’s rate might be made lower.

The loan provider then establishes that low rate as the rate for a consolidated and extended loan.

The government’s willingness to both extend the loan and to lower the rate can save students considerable money. Although the payment schedule has been extended, the person with the consolidated loan can feel free to pay the loan off ahead of schedule.

In other words, there is no prepayment penalty levied on those who make an early pay-off after choosing to consolidate student loans.

Two More Reasons to Consolidate Student Loans

It was mentioned above that the rate on a consolidated loan is lower than the rate on each of the original loans. Besides being lower, that rate is also fixed. The rate on a Stafford or Perkins Loan is variable.

The rate on a consolidated loan does not change during the course of the loan.

A student with a consolidated loan does not need to spend time keeping track of the payment schedule for two, three or more loans. That student loan recipient can just make a single monthly payment.

Often the student elects to make that single payment through an automatic debit. That can decrease the loan rate by another 0.25%.

Still Other Reasons to Consolidate Student Loans

Gradate students who consolidate student loans can learn then about fellowships and graduate school loans. Parents who consolidate their loans can search for free money or private loans. Those benefits come on top of the loan’s lower interest rate.

When you consolidate student loans, you provide yourself with a chance to improve your credit score. No graduate wants to face credit problems that have been caused by his or her need to take out loans in order to cover college expenses.

In light of all the above benefits, students should ask this question:

Who Can Qualify for the Program to Consolidate Student Loans?

Before allowing a student to consolidate student loans, the government looks to see if the student or graduate owes $10,500 or more.

The government also checks to see if the loan recipient has any loans in default.


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