Alpha Consumer

How to Get Student Loans Forgiven

By Kimberly Palmer

Posted: July 29, 2008

Dear Alpha Consumer,

I have about $70,000 in student loan debt and right now it's on deferral. I intend to pay it off, but I'm exploring all my options. Can you talk about debt forgiveness? I'm a writer and haven't found any debt forgiveness programs that apply.

The reason you haven't found any is probably because there aren't any. Loan forgiveness programs are few and far between, and the ones that do exist apply mainly to people working in public sector jobs such as law enforcement or social work. (Read more about the federal government's policies here.) People with disabilities are also eligible for various forgiveness programs.

But with $70,000 in debt, you probably have at least some private loans, and the rules on those will vary by provider. If you think you have a reasonable argument (you haven't mentioned one so far), then call your lender and make your case. If you are unable to make your monthly payments, you may be able to continue to defer your loan, although interest will still accrue.

The bottom line: You need to pay those loans back. After all, why would companies lend money to students if it was easy for them to avoid paying them back later?

I'm almost homeless b/c of student loans

I can't understand what the hell I was thinking going to college. Of course I was thinking having a college degree would help me in the long run. I can't even begin to describe my current situation right now. That's how bad it is.

I thought this was Equityville. This is where dreams came true. That is not the case at all. This is Inequityville. There is such an extreme distance between the rich and poor, so much division between the classes. The rich won't hire you because you lack the rich professional references. The poor won't hire you because you are too overqualified to be clerk at a Quikimart. And thanks to college education you don't seem to have any industry skills.

I can't even get a job as a ....

Hmm...Maybe some other country. So much for my 100 thousand dollar education.

PakmanFromNJ of NJ @ Nov 06, 2009 12:38:21 PM

I feel your pain...

It's a shame the amount of debt we have to obtain with such limited opportunities in this country. I owe $66,000 and can't find a job in Long Island due to nepotism and a terrible economy. The NYS BOE and Federal Government should look into the ridiculous hiring practices in Education. They should also investigate the way the federal Government hands out money for education towards jobs that simply do not exist in our economy. I can just barely make my rent and car payment. I have even tried to secure employment in other states ( believe me, I have attended job fairs in 3-4 other places). After 4 years of military service, 3 years law enforcement and 6 years attending college (finishing my grad degree next semester) I am still scraping by. There was a time when an education symbolized the "American Dream." I am not so sure anymore....

William S. of NY @ Oct 07, 2009 23:40:55 PM

Student Loans

I'm going through the same. Went to college, graduated & it's been really hard for me to find a good paying job after I graduated. I moved to the states to find a better job & be independent & things have been nothing but worse. I had been deferring my loan but now it just reached a point where I can not deferr it anymore. These people want me to start paying $600 monthly. I don't even have that money left after paying my rent & expenses. And if I don't pay it they will call my payroll company & start deducting the money from my paycheck. It's a really bad situation and I don't know what to do. I'm not denying to pay it but if I can at least reduce that payment to $200-300 until I can find a part time job & get back on track it would at least relieve me a bit. But those people don't care. They want that amount no matter what. I'm about to declare bankruptcy or leave my job & live from the goverment. This makes me ask myself "What did I go to college for?" But then again these are things that you don't think about when you go to college, are not eligible for student grants & have parents that don't help you. Sad situation. If someone out there knows of a something I could do to have them decrease the monthly payment for at least a couple of months I would appreciate they let me know. Like I said I know this is a debt I have to pay, not denying to pay it but right now the economy is really bad & jobs are not paying good at all.

S Rivas of FL @ Oct 07, 2009 17:24:19 PM

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Alpha Consumer

Alpha Consumer

Kimberly Palmer, senior editor for U.S. News & World Report, writes about how to save money, avoid scams, manage debt, and be a savvy shopper. Send your personal finance questions to her for expert money advice.


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