How To Delay Payments On Student Loans

In the following limited circumstances, you may be able to cancel your student loan. This means you no longer have to pay the loan. In some situations, you may only be able to get rid of a portion of the loan. 

• If you become totally and permanently disabled.
  • The definition of "totally and permanently disabled" is that you "must be unable to work and earn money or go to school because of an illness or injury that is expected to continue indefinitely or result in death." If the holder of the loan determines that you meet this definition, your loan will be discharged.
  • You cannot be considered totally and permanently disabled on the basis of a condition that existed at the time you applied for the loan unless your condition substantially deteriorated later.
  • You can get the disability cancellation form at www.ed.gov/offices/OSFAP/DCS/forms/disable.pdf
• You teach or provide services to needy people.
• You work in the health care professions or law enforcement.
• You perform public service. Under the Public Service Loan Forgiveness program, any principal and interest debt remaining after 10 years of full-time employment in public service iis waived if:
  • The borrower has made 120 payments as part of the Direct Loan program. Only payments made after October 1, 2007 count toward the 120 monthly payments. Borrowers may consolidate into Direct Lending in order to qualify for this loan forgiveness program starting July 1, 2008.
  • Public service jobs include, among other positions:
    • Emergency management 
    • Government (excluding time served as a member of Congress) 
    • Military service 
    • Public safety and law enforcement (police and fire)
    • Public health (including nurses, nurse practitioners, nurses in a clinical setting, and full-time professionals engaged in health care practitioner occupations and health care support occupations)
    • Public education 
    • Early childhood education (including licensed or regulated childcare, Head Start, and State-funded prekindergarten) 
    • Social work in a public child or family service agency
    • Public services for individuals with disabilities or the elderly 
    • Public interest legal services (including prosecutors, public defenders and legal advocacy on behalf of low-income communities at a nonprofit organization)
    • Public librarians 
    • School librarians and other school-based services 
    • Employees of tax exempt 501(c)(3) organizations. 
    • Full-time faculty at tribal colleges and universities.
    • Faculty teaching in high-need subject areas and shortage areas (including nurse faculty, foreign language faculty, and part-time faculty at community colleges).
  • In order to be considered to be employed full time,  you must work a minimum of 30 hours a week. 
  • Eligible loans include Federal Direct Stafford Loans (Subsidized and Unsubsidized), Federal Direct PLUS Loans, and Federal Direct Consolidation Loans. Borrowers in the Direct Loan program do not need to consolidate in order to qualify for loan forgiveness. Borrowers in the FFEL program will need to consolidate into Direct Loans. To obtain a federal direct consolidation loan, call the US Department of Education at 800.557.7392 (TDD 800.557.7395).

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