Generally speaking, there are only two ways to avoid paying a loan issued under Title IV of the Higher Education Act; Death or Disability. A loan can be canceled if you die or become permanently and totally disabled. However, you cannot be considered disabled on the basis of a condition that existed when you applied for the loan unless it has substantially deteriorated. Stafford, Parent PLUS, and SLS loans disbursed after January 1, 1986 can be canceled under two additional circumstances:
In addition, a National Defense Student Loan can be canceled if you enter into full-time teaching or military service. A National Direct Student Loan and a Perkins Loan can be at least partially canceled if you become a Head Start Program Staff Member or a Peace Corps Volunteer, a Peace Corps Member or VISTA Volunteer, a full-time law-enforcement or corrections officer (for loans received after 11-29-90), entered a full-time teaching position, became a full-time nurse or medical technician (for loans disbursed after 7-23-92), or
are a full-time employee of a public or private non-profit child or family services agency (if your loan was disbursed after 7-23-92).
If you do not have a high school (or equivalent) diploma, and were admitted to a school after July 1, 1987 you may be eligible to obtain a false certification discharge. The United States Department of Education may determine the school falsified your ability to benefit from the program unless you established one of the following: (i) passed an “ability to benefit” test, (ii) successfully completed a program of developmental or remedial education provided by the school, (iii) enrolled before July 1, 1991 and received a GED before completing your program of instruction.
There are never early payment penalties for federal student loans
Yes, the techniques utilized by collection agencies can be aggressive. You may experience high pressure phone calls. Most employers take a very negative attitude toward their employees who are receiving collection calls at work. Tactics used by these agencies can include: