Is there anything I can do about a defaulted student loan?

My grandparents informed me they have been receiving calls from a law firm regarding a student loan. I’m currently enrolled in school, squared things away with my other loan company but did not do so with the now defaulted loan. I can’t afford large monthly payments and they are asking for payment in full. I really need help, is there anything I can do as far as deferment, forgiveness or bankrupcty?

Asked on September 22, 2011 under Bankruptcy Law, Ohio

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Dealing with a defaulted student loan can be tricky. Non-payment of such a loan can lead to collection activity and ultimately a judgment. Trying obtain a cancellation and/or deferrment of a student loan or getting one discharged in bankruptcy can be next to impossible (but not entirely impossible). It takes something along the lines of a disabling injury or disease, or other extreme circumstance. Since payment in full at this point is out of the question, you'll need to work out new payment arrangements.

For further information regarding what, if any options, that you may have here is a site that I think you will find to be of help:  http://www2.ed.gov/offices/OSFAP/DCS/index.html

 


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