Asked by Anonymous
How do I find forgiveness for my student loan. I will never be able to pay it off. I am on disability now.
It’s possible to have your student loan debt discharged (canceled) or reduced, but only under certain specific circumstances:
- You die or become totally and permanently disabled.
- Your school closed before you could complete your program.
- For FFEL℠ and Direct Stafford Loans only: Your school owes your lender a refund, forged your signature on a promissory note, or certified your loan even though you didn’t have the ability to benefit from the coursework.
- You work in certain designated public school service professions (including teaching in a low-income school).
- You file for bankruptcy. (This cancellation is rare and occurs only if a bankruptcy court rules that repayment would cause undue hardship.)
If you are unable to work and earn money because of an injury or illness that is expected to continue indefinitely or result in death, you may apply for a Total and Permanent Disability (TPD) discharge of your FFEL Loans, Federal Perkins Loans, Federal Direct Loans, or TEACH Grant service obligation. Disabilitydischarge.com has more information on qualifying and to apply for a TPD discharge.
Visit the Department of Education for more information on student loan cancellation.
If you are not sure what kind of loan you have, you can get information on your loan from the National Student Loan Data System.
If you would like to file a complaint about your student loans, you can do so through the Consumer Financial Protection Bureau.
This week is National Consumer Protection Week. Today we are answering your consumer questions. You can join us for a live social media chat at 2 p.m. EST. Learn more about the chat and how to submit your questions.
Asked by Anonymous
Job is being outsourced. Is there any small business loans available
Asked by Anonymous
when can i find a real grant i dont have to pay back and actually claim it
The government offers different types of financial assistance, including grants. You are not required to pay back a grant, but there are very few grants available to individuals. Most grants are awarded to universities, researchers, cities, states, counties, and non-profit organizations. Loans are generally the best option for individuals. You are required to pay back a loan, often with interest.
Benefits.gov can help you identify loans and sources of financial assistance for which you may be eligible and tell you how and where to apply.
Find other benefits, grants, and financial aid available from the government.
If you’re struggling to pay your student loans, the student debt repayment assistant may be able to help. Answer a few questions about your loans and ability to pay, and the assistant will help you find the best repayment option.
If you are a senior and need to supplement your income, you might be considering a reverse mortgage. A “reverse” mortgage is a loan against your home that you don’t have to pay back for as long as you live there.
When the home is sold, the lenders recover the principal, plus interest, on the loan. The remaining value of the home goes to you or your heirs.
With a reverse mortgage, you can turn the value of your home into cash without having to move or to repay a loan each month.
The Home Equity Conversion Mortgage (HECM) is the only reverse mortgage insured by the federal government. The HECM is a safe alternative resource that can provide you with greater financial security and independence.
In order to qualify for the HECM, you must:
- Be 62 years of age or older
- Own the property outright or have a small mortgage balance
- Occupy the property as your principal residence
- Not be delinquent on any federal debt
- Participate in a consumer information session given by an approved HECM counselor
As with all mortgages, there are costs associated with getting a HECM, including:
- Loan Origination Fee
- Closing Costs (i.e., appraisal, inspection, title search and insurance, etc)
- FHA Mortgage Insurance Premiums
- Servicing Fee
To learn more, check out Key Decisions About Reverse Mortgages offered by the AARP.