I have an out standing student loan which has'nt been paid off for many years?

Question

I am interested in returning to college for a bachelors degree in the arts. However, I would need to get financial aid, can I write the university with a letter of forgiveness.

Answer 1

It seems there are some dissenting opinions on what your options are. Here's why: it's variable. You have 3 groups you can work with to get yourself back on track and you really need to work with all of them to get a new loan.

1. Call you lender. Let them know what the situation was; even if it wasn't "catastrophic". They may have a program to help relieve your payments for a period of time or even reduce the amount. At best you can get on track with a payment program that will show you have the best intention to repay the loan. Typically 3 payments will do it.

2. Let the Dept. of Education know what's going on. Fill out your FAFSA even if you were denied in the past. The only way for them to help you is to know your current situation. Once it's denied you can move on to step 3.

3. Call and arrange for an in person appointment with an Aid Advisor at your school (you may even want to arrange it with the director of student aid). They can be very busy so be patient and plan in advance. A prescheduled appointment is the best way to be sure you have someone who can help you listening to you. In the meeting explain your case, truthfully. They understand what students can go through and can change how your awards are given based on your situation. Bring documentation with you from your lender and any other material (past pay stubs, unemployment documentation, etc). Most students are not prepared enough for these meetings so a little prep can go a long way.

If all else fails there are private loan options for education. They work similarly to Federal Student Loans but can carry higher rates and don't have some of the other benefits. New programs will be coming out soon to improve your options in this area so if you can wait (after July 1st) to apply.

If you need the contact information to your lenders and servicers don't hesitate to call. I do have access to the National Student Loan Database System and can look this up for you.

Good Luck!

Answer 2

lol, sorry, but I don't think the university cares about a letter of forgiveness. If you didn't take the responsibility to pay off your old loan then they aren't going to loan you money because you probably won't pay off the new ones either. Here's an idea...pay off your old loan. Then, when it's paid off, you can go to college again. Money will probably be tight in the meantime, but I'm sure it is doable. If you aren't willing to work hard enough to do that, then you probably won't make it through college anyway.

Answer 3

If it's the Stafford loan, you will need to make payment arrangements with the Department of Education. You will need to make 6 months or 6 consecutive payments before you'll be able to get another Stafford loan.

If your student loan is from a private loan company, you'll want to follow their rules to pay back, and if it's a private loan it won't effect your federal Stafford loan (via FAFSA).

Don't let this discourage you, if you really want to go back to school, set up the arrangements with the Department of Education. Also, if something would happen again like this, your lender is VERY understanding when it comes to financial hardships and as long as you keep in contact with them they will work with you. 100% guaranteed. They don't want your loan to go into default, they want to help. I promise.

Answer 4

You need to have documentation of a catastrophic event. In other words a VERY good reason like someone you know died , you were going through financial hardships etc.You can't just tell em' you gotta back it up with something concrete.