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Under what circumstances can my AES student loans be forgiven?

I took two AES student loans to fund my college expenses. Since my parents couldn’t be able to afford my tuition fee, I had relentlessly applied for scholarships and grants I came across. Unfortunately, none bore fruit. I, therefore, applied with AES who had the lowest interest rate student loans I could find. I’ve been servicing the student loans for the past five years until I got an accident three months ago and stopped working.  I would like to know what instances can a federal student finance loan be forgiven?

Frank Nichols

in Student Loans

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Victoria Fowler on May 4, 2018

I’m very sorry about your accident. You can apply for student loan relief as you are entirely unable to continue making payments. It is vital to clear the matter as soon as you can as I suspect you might already be in loan default (since you stopped making payments three months ago).

An AES student loan or any other federal loan can be forgiven or discharged in full or in part in the following circumstances:

  • In case you have a total or permanent disability. If you have a medically proven mental or physical condition, you can apply for your loan dismissal based on total and permanent disability. You should apply for loan discharge since your physical health prevents you from participating in the employment for which you have been trained. In this case, your obligation to repay the remainder of your loan is canceled.
  • If you are a teacher who has taught for at least five years in a Title 1/ low-income school. Through the Teacher Loan Forgiveness, a teacher who has worked full-time in a Title 1 school for at least five continuous academic years may benefit from part or full student loan forgiveness.
  • If you are a federal loan beneficiary and you qualify for the public service loan forgiveness program. This program has a lot of requirements. However, you must have made at least 120 payments under an eligible payment plan and working full-time under a qualified public service employer. Also, you must have an eligible low-interest rate student loan (Direct Loan).
  • A college closes down while you are enrolled. If your college/ university shut down while you were still a student there and therefore you could not complete the course that the loan money was intended for, you may be eligible to seek loan discharge. Consequently, you cease to make monthly payments and also get refunds for any payments you might have already made.
  • Disqualification from employment in your field. Also known as false certification, you may be granted student’s finance loan discharge if you are disqualified from a profession for which you have been trained because of mental/ physical conditions, criminal record or age.   
  • In case of the borrower dies. Federal and parent PLUS loans may be discharged in case of death. If you, the borrower dies, your federal loan is dismissed. For the PLUS loans, if parent or student dies, the loan is discharged.

Caleb Jenkins2 years ago

A severe injury, such as what you have undergone, may throw you off balance and negatively affect your finances. If such an injury keeps you from working (and without pay for that matter), you may fall back on your monthly payments. Consequently, your credit score falls possibly denying you the chance to buy a home or acquire another loan later. However, you have the option of delaying or postponing AES student loans payments through deferment or forbearance.

It is possible to defer your loan repayment for a maximum time of three years by applying for a deferment. Though the interest continues to accrue, the type of loan you have (subsidized or unsubsidized) determines who pays for the interest. Apart from injury, other reasons people site includes economic hardship or unemployment.Forbearance, on the other hand, allows you to postpone your loan repayments for a period of up to 12 months.


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