Consolidating a defaulted private student loan
For the vast majority of people experiencing economic hardship, student loans will not be discharged.
Normally, student loans must be repaid even if your declare bankruptcy.
Direct Stafford Loans: Contact the Direct Loan Servicing Center at 1-800-848-0979. The loan servicer is the organization that handles your monthly billing and accepts loan payments.
If You Cannot Write Off Your Student Loan, You Have Other Options If you simply cannot afford your student loan payments, you first need to realize that you have options. Here are the steps you need to take now: Number One: Contact your lender or loan servicer right away.
With graduated repayment, your monthly payments will be small and will increase over time. If you cannot afford to pay any amount, tell your servicer that you are experiencing financial hardship.
A defaulted loan cannot be canceled based on qualifying service (e.g. For a complete list of discharge and cancellation provisions for Perkins Loans and Stafford Loans, visit How do I find out if I can get a discharge?
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Your servicer is the company that sends you your monthly statements and collects your payments.
Tell them that you are having difficultly and that you would like to know what all of your options are.
But this statistic is misleading, because a lot of borrowers think this means qualifying for some type of student loan forgiveness program. Actually, most borrowers qualify for student loan forgiveness through one of these “secret” ways.