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Having your Student Loans Forgiven

M

MCPappy

New member
Hi Everyone,

My name is Melissa, I am 24/F with CF from CA. I went to USC and racked up about $25,000 in student loans. Since I graduated in 2007 I have been making my loan payments and making a small dent in my loans. In October 2009, I made the decision to stop working because it was starting to negativly effect my health, and enjoying the time I feel good and focusing on staying healthy seemed to be much more important.

For the past three months I have been going through the process of trying to get on SSI benefits. This has proven to be more than challenging. I have finally had my interview with them, and now it is time to wait 90-120 days...

I have been paying my loans on time even though I have not been earning money, but money is running out, and I will not be able to realistically pay my student loans on the amount that SSI will award me. I have contacted my loan providers and had two or the three put on hold. Both providers told me that I need to file for Permanent disability. The only problem is it says that you are not able to work or earn in any capacity, where SSI will let you work some and still be awarded benefits.

I know that I am not healthy enought to work full time, however I dont know if I qualify "not being able to work in any capacity".... and what if I get my loans forgiven now and in a few years something happens where I can begin working ( wouldnt that be great if CF got better as we got older =p) Are there reprocussions...?

I wanted to see if anyone had gone through this process and if there is any advice or information or suggestions that you have for me.

I would pay the loans if I could, but I am trying to figure out how I am going to live on my own off of so little from SSI already, with out even factoring in the additional loan payments...

Any help would be appreciated!

Thanks and I hope everyone is feeling Healthy!!!

Melissa
 
M

MCPappy

New member
Hi Everyone,

My name is Melissa, I am 24/F with CF from CA. I went to USC and racked up about $25,000 in student loans. Since I graduated in 2007 I have been making my loan payments and making a small dent in my loans. In October 2009, I made the decision to stop working because it was starting to negativly effect my health, and enjoying the time I feel good and focusing on staying healthy seemed to be much more important.

For the past three months I have been going through the process of trying to get on SSI benefits. This has proven to be more than challenging. I have finally had my interview with them, and now it is time to wait 90-120 days...

I have been paying my loans on time even though I have not been earning money, but money is running out, and I will not be able to realistically pay my student loans on the amount that SSI will award me. I have contacted my loan providers and had two or the three put on hold. Both providers told me that I need to file for Permanent disability. The only problem is it says that you are not able to work or earn in any capacity, where SSI will let you work some and still be awarded benefits.

I know that I am not healthy enought to work full time, however I dont know if I qualify "not being able to work in any capacity".... and what if I get my loans forgiven now and in a few years something happens where I can begin working ( wouldnt that be great if CF got better as we got older =p) Are there reprocussions...?

I wanted to see if anyone had gone through this process and if there is any advice or information or suggestions that you have for me.

I would pay the loans if I could, but I am trying to figure out how I am going to live on my own off of so little from SSI already, with out even factoring in the additional loan payments...

Any help would be appreciated!

Thanks and I hope everyone is feeling Healthy!!!

Melissa
 
M

MCPappy

New member
Hi Everyone,
<br />
<br />My name is Melissa, I am 24/F with CF from CA. I went to USC and racked up about $25,000 in student loans. Since I graduated in 2007 I have been making my loan payments and making a small dent in my loans. In October 2009, I made the decision to stop working because it was starting to negativly effect my health, and enjoying the time I feel good and focusing on staying healthy seemed to be much more important.
<br />
<br />For the past three months I have been going through the process of trying to get on SSI benefits. This has proven to be more than challenging. I have finally had my interview with them, and now it is time to wait 90-120 days...
<br />
<br />I have been paying my loans on time even though I have not been earning money, but money is running out, and I will not be able to realistically pay my student loans on the amount that SSI will award me. I have contacted my loan providers and had two or the three put on hold. Both providers told me that I need to file for Permanent disability. The only problem is it says that you are not able to work or earn in any capacity, where SSI will let you work some and still be awarded benefits.
<br />
<br />I know that I am not healthy enought to work full time, however I dont know if I qualify "not being able to work in any capacity".... and what if I get my loans forgiven now and in a few years something happens where I can begin working ( wouldnt that be great if CF got better as we got older =p) Are there reprocussions...?
<br />
<br />I wanted to see if anyone had gone through this process and if there is any advice or information or suggestions that you have for me.
<br />
<br />I would pay the loans if I could, but I am trying to figure out how I am going to live on my own off of so little from SSI already, with out even factoring in the additional loan payments...
<br />
<br />Any help would be appreciated!
<br />
<br />Thanks and I hope everyone is feeling Healthy!!!
<br />
<br />Melissa
 
M

musclemania70

New member
I was in the same boat. I considered applying for the disability to get rid of my loans.
#1. my doctor didn't really want to sign the papers because it is esentially saying that you are in NO CAPACITY to work and YOU NEVER WILL BE ABLE TO WORK. I did not want to enter that agreement with the gov't. I want to be able to work if and when I am able.
#2. I receive SSDI and still, the gov't allows you to work up to a certain amount and keep receiving your SSD. So, even though I receive SSDI, I am still able to work a bit which means I am not eligible to have my loans forgiven.
#3. There is a program that I was accepted into that you apply for directly through the student loan program called the Income Based Reduction program. This allows you to have a significantly reduced monthly payment based on your income level. And, if after several years with the reduced payment your loan is not paid off, the remaining balance will be forgiven.
I would go for that option if I were you.....
 
M

musclemania70

New member
I was in the same boat. I considered applying for the disability to get rid of my loans.
#1. my doctor didn't really want to sign the papers because it is esentially saying that you are in NO CAPACITY to work and YOU NEVER WILL BE ABLE TO WORK. I did not want to enter that agreement with the gov't. I want to be able to work if and when I am able.
#2. I receive SSDI and still, the gov't allows you to work up to a certain amount and keep receiving your SSD. So, even though I receive SSDI, I am still able to work a bit which means I am not eligible to have my loans forgiven.
#3. There is a program that I was accepted into that you apply for directly through the student loan program called the Income Based Reduction program. This allows you to have a significantly reduced monthly payment based on your income level. And, if after several years with the reduced payment your loan is not paid off, the remaining balance will be forgiven.
I would go for that option if I were you.....
 
M

musclemania70

New member
I was in the same boat. I considered applying for the disability to get rid of my loans.
<br />#1. my doctor didn't really want to sign the papers because it is esentially saying that you are in NO CAPACITY to work and YOU NEVER WILL BE ABLE TO WORK. I did not want to enter that agreement with the gov't. I want to be able to work if and when I am able.
<br />#2. I receive SSDI and still, the gov't allows you to work up to a certain amount and keep receiving your SSD. So, even though I receive SSDI, I am still able to work a bit which means I am not eligible to have my loans forgiven.
<br />#3. There is a program that I was accepted into that you apply for directly through the student loan program called the Income Based Reduction program. This allows you to have a significantly reduced monthly payment based on your income level. And, if after several years with the reduced payment your loan is not paid off, the remaining balance will be forgiven.
<br />I would go for that option if I were you.....
 
E

ej0820

New member
so, what happens if you have your loans forgiven because you are completely disabled and not physically able to be working and receiving SSDI, and you end up getting better enough to maybe hold down something part-time or even work just a couple hours a week? Do they revoke the forgiveness (I don't know the appropriate terms, here, lol) and have you start repaying them?

What if you get a lung tx and are eventually able to work a normal, full-time job? Are you required to restart repaying the loans back, or are you completely forgiven forever once approved for it, regardless of your status in the future?

This was a great topic post! Thanks!
 
E

ej0820

New member
so, what happens if you have your loans forgiven because you are completely disabled and not physically able to be working and receiving SSDI, and you end up getting better enough to maybe hold down something part-time or even work just a couple hours a week? Do they revoke the forgiveness (I don't know the appropriate terms, here, lol) and have you start repaying them?

What if you get a lung tx and are eventually able to work a normal, full-time job? Are you required to restart repaying the loans back, or are you completely forgiven forever once approved for it, regardless of your status in the future?

This was a great topic post! Thanks!
 
E

ej0820

New member
so, what happens if you have your loans forgiven because you are completely disabled and not physically able to be working and receiving SSDI, and you end up getting better enough to maybe hold down something part-time or even work just a couple hours a week? Do they revoke the forgiveness (I don't know the appropriate terms, here, lol) and have you start repaying them?
<br />
<br />What if you get a lung tx and are eventually able to work a normal, full-time job? Are you required to restart repaying the loans back, or are you completely forgiven forever once approved for it, regardless of your status in the future?
<br />
<br />This was a great topic post! Thanks!
 
J

just1more

New member
Once they are forgiven they go away; but it is not easy to get them forgiven

I would strongly suggest the Income Based Reduction Program (IBR). You would need to talk to the loan company and based upon your actual income the payments are capped at a % of what you make. Thus if you only make X, then they will adjust your payments so you can afford.

Another option you have if they are Stafford loans (federal financial aid) is to put them into deferment. You can normally defer up to 2-3 years based upon 'financial hardship' This doesn't make the debt go away but stops your payments. Note: if you do this interest still collects so you will end up owing a bit more.
 
J

just1more

New member
Once they are forgiven they go away; but it is not easy to get them forgiven

I would strongly suggest the Income Based Reduction Program (IBR). You would need to talk to the loan company and based upon your actual income the payments are capped at a % of what you make. Thus if you only make X, then they will adjust your payments so you can afford.

Another option you have if they are Stafford loans (federal financial aid) is to put them into deferment. You can normally defer up to 2-3 years based upon 'financial hardship' This doesn't make the debt go away but stops your payments. Note: if you do this interest still collects so you will end up owing a bit more.
 
J

just1more

New member
Once they are forgiven they go away; but it is not easy to get them forgiven
<br />
<br />I would strongly suggest the Income Based Reduction Program (IBR). You would need to talk to the loan company and based upon your actual income the payments are capped at a % of what you make. Thus if you only make X, then they will adjust your payments so you can afford.
<br />
<br />Another option you have if they are Stafford loans (federal financial aid) is to put them into deferment. You can normally defer up to 2-3 years based upon 'financial hardship' This doesn't make the debt go away but stops your payments. Note: if you do this interest still collects so you will end up owing a bit more.
 
J

julie

New member
Melissa,

We got my ex husbands discharged quite a few years ago. Are all of your loans federal loans? Those are the only ones that offer the disability discharge, unless your school offers something as well. Please contact me if you are interested in what we did, my email is services@dafcf.org

About your question of working later on and are there any repercussions... The way the federal discharge works is that once it's granted, you have a 3 year period that they evaluate. In that 3 years, you cannot "earn" over the Federal Poverty level (FPL) for a family of 1 (doesn't matter if your family size is 6 or 12 or whatever). That earning limit is just for you though, NOT a spouse or signifigant other. If, within those 3 years you do go back to work and it is above the FPL, your loans and monthly payments will be "reactivate" but there is NO penalty or interest accrued during the time that you didn't pay them because of the disability discharge.

If after 3 years you are still not working, they are permanently discharged and can NEVER be "re-applied" to you even if 2 years after that you go back to work and earn $40k a year. HTH
 
J

julie

New member
Melissa,

We got my ex husbands discharged quite a few years ago. Are all of your loans federal loans? Those are the only ones that offer the disability discharge, unless your school offers something as well. Please contact me if you are interested in what we did, my email is services@dafcf.org

About your question of working later on and are there any repercussions... The way the federal discharge works is that once it's granted, you have a 3 year period that they evaluate. In that 3 years, you cannot "earn" over the Federal Poverty level (FPL) for a family of 1 (doesn't matter if your family size is 6 or 12 or whatever). That earning limit is just for you though, NOT a spouse or signifigant other. If, within those 3 years you do go back to work and it is above the FPL, your loans and monthly payments will be "reactivate" but there is NO penalty or interest accrued during the time that you didn't pay them because of the disability discharge.

If after 3 years you are still not working, they are permanently discharged and can NEVER be "re-applied" to you even if 2 years after that you go back to work and earn $40k a year. HTH
 
J

julie

New member
Melissa,
<br />
<br />We got my ex husbands discharged quite a few years ago. Are all of your loans federal loans? Those are the only ones that offer the disability discharge, unless your school offers something as well. Please contact me if you are interested in what we did, my email is services@dafcf.org
<br />
<br />About your question of working later on and are there any repercussions... The way the federal discharge works is that once it's granted, you have a 3 year period that they evaluate. In that 3 years, you cannot "earn" over the Federal Poverty level (FPL) for a family of 1 (doesn't matter if your family size is 6 or 12 or whatever). That earning limit is just for you though, NOT a spouse or signifigant other. If, within those 3 years you do go back to work and it is above the FPL, your loans and monthly payments will be "reactivate" but there is NO penalty or interest accrued during the time that you didn't pay them because of the disability discharge.
<br />
<br />If after 3 years you are still not working, they are permanently discharged and can NEVER be "re-applied" to you even if 2 years after that you go back to work and earn $40k a year. HTH
 
J

JennifersHope

New member
Thank you so much for your information Julie... I appreciate it so much. You are a God Send to so many people on here...

Could you please update your blog.. I check on there several times a week.. I am dying for an update on those three precious children of yours
 
J

JennifersHope

New member
Thank you so much for your information Julie... I appreciate it so much. You are a God Send to so many people on here...

Could you please update your blog.. I check on there several times a week.. I am dying for an update on those three precious children of yours
 
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