n if they are the one holding your loan.

6. If DoE has ascribed your loan through a collection agency, notify the agency that you’re filing a discharge of the debt.

Those who qualifies in attempting to discharge their loan

• If the school you’re attending is closed while you were enrolled or of leave of absence – this means that you haven’t completed the course curriculum the school offers because the school you’re attending stopped its operation.

• Withdrawal from school within a period of 90 days before its closure. If the loaner is already released of its responsibility, he/she is entitled of reimbursements of previous payments made. If there was a poor credit backg

Students who were given loans (under Title IV of the Higher Education) are entitled to pay their loan on its due date. Failure to pay the loan [for (1) 180 days, for monthly installment basis (2) 240 days, for frequently payment basis would mean a default on your loan. It is the lender’s responsibility to remind you about the repayment of your loan.

If still unsuccessful, the guaranty agency would take over and place your loan on a fail to pay status. Your lender then would have the privilege of making up for the time you missed to pay and would require you paying the entire balance on a single payment.

Bearing the consequences of a defaulted loan

If your student loan is on “fail to pay” status, you’re forced to pay the due amount immediately. This would require you to pay the whole amount on single payment and delayed payments could no longer be excused.

This would also result on long term effect such as (1) your salary can be trimmed (2) your tax refunds are withdrawn (3) your qualifications for application of other types of loans can be affected.

If a guarantee agency took over your loan…

• A possibility of additional collection cost may be charged to you.

• Your employer might be required to surrender 15% of your salary for the repayment of your loan.

• The agency is entitled to do some legal actions to oblige you of repaying your loan.

• Credit agencies would be noted about your credibility as a loaner. This might hinder you from having future federal loans.

How to prevent this situation?

• You have to consolidate your student loans – the result of this idea would be (1) degraded interest rates (2) extension of terms on your student loan.

• Student loan suspension – common reason of suspending your loan would be (1) medical internship (2) economic incapability (3) public service (4) other reasonable incapacity.

• Leniency – this means that the loaner can pay the interest first and pay the principal depending on what the loaner and the lender have settled. This could extend the repayment period of the loan.

• Cancellation of Loan – there are certain qualifications for you to be able to cancel your loan. (1) In case of death [if you die] (2) If you become totally disabled [this would be regarded on certain basis in accordance of the school you’re attending] (3) If you engaged in permanent teaching or join in military service.

How to cancel my loan?

1. You have to detect who is currently keeping your loan.

2. Check the received collection notices.

3. Call the information center of the Federal Student Assistance.

4. In case of a guarantee agency took over, make an agreement with them.

5. Deal with the administrative section of Education if they are the one holding your loan.

6. If DoE has ascribed your loan through a collection agency, notify the agency that you’re filing a discharge of the debt.

Those who qualifies in attempting to discharge their loan

• If the school you’re attending is closed while you were enrolled or of leave of absence – this means that you haven’t completed the course curriculum the school offers because the school you’re attending stopped its operation.

• Withdrawal from school within a period of 90 days before its closure. If the loaner is already released of its responsibility, he/she is entitled of reimbursements of previous payments made. If there was a poor credit backg

on “fail to pay” status, you’re forced to pay the due amount immediately. This would require you to pay the whole amount on single payment and delayed payments could no longer be excused.

This would also result on long term effect such as (1) your salary can be trimmed (2) your tax refunds are withdrawn (3) your qualifications for application of other types of loans can be affected.

If a guarantee agency took over your loan…

• A possibility of additional collection cost may be charged to you.

• Your employer might be required to surrender 15% of your salary for the repayment of your loan.

• The agency is entitled to do some legal actions to oblige you of repaying your loan.

• Credit agencies would be noted about your credibility as a loaner. This might hinder you from having future federal loans.

How to prevent this situation?

• You have to consolidate your student loans – the result of this idea would be (1) degraded interest rates (2) extension of terms on your student loan.

• Student loan suspension – common reason of suspending your loan would be (1) medical internship (2) economic incapability (3) public service (4) other reasonable incapacity.

• Leniency – this means that the loaner can pay the interest first and pay the principal depending on what the loaner and the lender have settled. This could extend the repayment period of the loan.

• Cancellation of Loan – there are certain qualifications for you to be able to cancel your loan. (1) In case of death [if you die] (2) If you become totally disabled [this would be regarded on certain basis in accordance of the school you’re attending] (3) If you engaged in permanent teaching or join in military service.

How to cancel my loan?

1. You have to detect who is currently keeping your loan.

2. Check the received collection notices.

3. Call the information center of the Federal Student Assistance.

4. In case of a guarantee agency took over, make an agreement with them.

5. Deal with the administrative section of Education if they are the one holding your loan.

6. If DoE has ascribed your loan through a collection agency, notify the agency that you’re filing a discharge of the debt.

Those who qualifies in attempting to discharge their loan

• If the school you’re attending is closed while you were enrolled or of leave of absence – this means that you haven’t completed the course curriculum the school offers because the school you’re attending stopped its operation.

• Withdrawal from school within a period of 90 days before its closure. If the loaner is already released of its responsibility, he/she is entitled of reimbursements of previous payments made. If there was a poor credit backg

your loan.

• Credit agencies would be noted about your credibility as a loaner. This might hinder you from having future federal loans.

How to prevent this situation?

• You have to consolidate your student loans – the result of this idea would be (1) degraded interest rates (2) extension of terms on your student loan.

• Student loan suspension – common reason of suspending your loan would be (1) medical internship (2) economic incapability (3) public service (4) other reasonable incapacity.

• Leniency – this means that the loaner can pay the interest first and pay the principal depending on what the loaner and the lender have settled. This could extend the repayment period of the loan.

• Cancellation of Loan – there are certain qualifications for you to be able to cancel your loan. (1) In case of death [if you die] (2) If you become totally disabled [this would be regarded on certain basis in accordance of the school you’re attending] (3) If you engaged in permanent teaching or join in military service.

How to cancel my loan?

1. You have to detect who is currently keeping your loan.

2. Check the received collection notices.

3. Call the information center of the Federal Student Assistance.

4. In case of a guarantee agency took over, make an agreement with them.

5. Deal with the administrative section of Education if they are the one holding your loan.

6. If DoE has ascribed your loan through a collection agency, notify the agency that you’re filing a discharge of the debt.

Those who qualifies in attempting to discharge their loan

• If the school you’re attending is closed while you were enrolled or of leave of absence – this means that you haven’t completed the course curriculum the school offers because the school you’re attending stopped its operation.

• Withdrawal from school within a period of 90 days before its closure. If the loaner is already released of its responsibility, he/she is entitled of reimbursements of previous payments made. If there was a poor credit backg

ayment period of the loan.

• Cancellation of Loan – there are certain qualifications for you to be able to cancel your loan. (1) In case of death [if you die] (2) If you become totally disabled [this would be regarded on certain basis in accordance of the school you’re attending] (3) If you engaged in permanent teaching or join in military service.

How to cancel my loan?

1. You have to detect who is currently keeping your loan.

2. Check the received collection notices.

3. Call the information center of the Federal Student Assistance.

4. In case of a guarantee agency took over, make an agreement with them.

5. Deal with the administrative section of Education if they are the one holding your loan.

6. If DoE has ascribed your loan through a collection agency, notify the agency that you’re filing a discharge of the debt.

Those who qualifies in attempting to discharge their loan

• If the school you’re attending is closed while you were enrolled or of leave of absence – this means that you haven’t completed the course curriculum the school offers because the school you’re attending stopped its operation.

• Withdrawal from school within a period of 90 days before its closure. If the loaner is already released of its responsibility, he/she is entitled of reimbursements of previous payments made. If there was a poor credit backg

n if they are the one holding your loan.

6. If DoE has ascribed your loan through a collection agency, notify the agency that you’re filing a discharge of the debt.

Those who qualifies in attempting to discharge their loan

• If the school you’re attending is closed while you were enrolled or of leave of absence – this means that you haven’t completed the course curriculum the school offers because the school you’re attending stopped its operation.

• Withdrawal from school within a period of 90 days before its closure. If the loaner is already released of its responsibility, he/she is entitled of reimbursements of previous payments made. If there was a poor credit background had been imposed, the agency is responsible in informing other federal loan agencies that the concerned individual is free from liability and its history of bad credit is deleted.