Is there student loan default forgiveness?
Over 30 years ago I took out a student loan and never paid it back. When Jimmy Carter was President he made a law that the Dept of Education could sell the defaulted loans to a collection company.
Since it has been so long, and I never seem to be able to put this in my budget I am wondering if there is some way to request forgiveness for this loan?
Where would I start- local government representative, state senator?
- Anonymous1 decade agoFavorite Answer
Student loans can not be forgiven unless except under specific situations. You die, you become disabled, the school closed before you could graduate, and a couple of others I'll link later. This is federal law, so if you want the law changed, I'd definitely write your local and state reps.
However they will not be able to help your more immediate situation of having a defaulted student loan. Best make small payments (every little bit helps) to start bringing down the balance because a small loan that long ago will have a ton of interest added onto it. Eventually they'll catch up to you and garnish your wages and take your income tax returns.Source(s): http://www.ed.gov/offices/OSFAP/DCS/forms.html http://studentaid.ed.gov/students/attachments/site... (pg 34, 35)
- 1 decade ago
No way that I know of.
U.S. Treasury Dept is the one who will show you if it is still actively being collected by the U.S. Deptartment of Education. (Feds)
I have not been able to put much in my budget either, so I guess if everyone couldn't it would be entirely free educatioin.Source(s): imo
- beebeeLv 41 decade ago
if you die, you dont have to pay