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                   Update on the Changes to Federal Student Loan Repayment Plans     

Did you truly know what you were getting into when you took out student loans? Chances are you were looking for a way to better your life and you decided to go to college so you filled out an application and on it, there was a question that asked "Will You Need a Student Loan".  You checked the "yes" box and thought you were good to go. It all seemed so easy didn't it?

Like the students in the picture, you were probably in the dark. You probably didn't pay much attention to the interest rate and you probably weren't thinking about what would happen if you couldn't make your payments.  it's likely you didn't know there was no statute of limitations on student loans and that the interest could be applied forever or that you  could lose your tax refunds, or that money could be taken money directly from your paycheck.  You  might even have thought because  it was a was student loan, it was a loan that was meant to help people and they wouldn't be as strict about making you pay it back.  Of course you were planning to pay it back.  But when it was time to make the payments it wasn't as east as you thought it would be. So you started thinking that you would pay it back when you could afford to.  While you were waiting for that to happen the interest on your loan was hard at work and it was busy busy, busy!

 Student loan debt is the hardest debt to get rid of.  If you do not pay it back the IRS can attach to your income tax return or your paycheck.  Student loans in default will destroy your credit and you will not be allowed to enroll at a college until your loans are out of default. There is no statute of limitations on student loan debt.  If you owe it now  and you don't pay it you will owe it when you are 65 and it will get deducted from your Social Security .                    

Fortunately there have been some changes that will allow some flexibility in the way you pay it back.             

You can use the link below if you need information on the new repayment plans.  Be aware that there are numerous scams going around and be very careful about who you talk to. 


There are few, but still some, ways to set up a new repayment plan after you have defaulted on your loan. If you are able to get out of default through rehabilitating or consolidating your loans, you will once again be eligible for the more flexible pre-default repayment options as well as ttp://

Student Loan Hero

Student Loan Hero (SLH) organizes all your student debt into a single web interface and helps you get on the right path towards paying it off.

If You Are Disabled You May be Eligible for a Student Loan Disability Discharge.

 To find out if you are eligible contact the Federal Student Aid office, a.k.a. the U.S. Department of Education. To begin, you'll need to contact the agency that handles your student loan, such as Sallie Mae or Great Lakes. You'll have to request a loan discharge form for Total and Permanent Disability. Most of those loan repayment originators have online forms that you can download on your personal computer, or you can request them over the phone. These forms have to be signed by you and your physician.

Initial Loan Discharge Application

A physician has to sign your application for loan forgiveness. Be sure that the physician states exactly what the disabling condition is. Just stating that an individual is disabled, without any detailed explanation, will only get a claim denied in rather short order, and then you'll have to start the process all over again. Have the primary care physician or specialist keep a copy of this form in your file, as the Federal Student Aid office may contact them for further information if needed. Applicants have 90 days from the date a physician signs the form to submit it to the U.S. Department of Education, FSAs

Once the U.S. Department of Education receives the form, it will be sent to a department that handles the Total and Permanent Disability requests. They review the requests and will ask for additional information from your physician (if needed), and in some cases, from the Social Security Administration.

Once the office of Total and Permanent disability receives your application, you'll receive a letter letting you know that your request is being processed. You will get a letter notifying you whether or not your application has been approved within 2-3 months. Your loan will be in a deferment status during this time.