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What Are the Basics of Student Loan Forgiveness?

The Basics of Student Loan Forgiveness

What is student loan forgiveness? – Whenever a lender forgives a portion or all of a student borrower’s debt. It is commonly known that it is nearly impossible for a  borrower to obtain student loan forgiveness through bankruptcy. This information leads many people to believe that there are no forgiveness options available for student borrowers.  Not true.

How do I obtain student loan forgiveness? – The answer to this question depends on whether your loans are federal or private. If you have both, no worries, you will just need two solutions.

For federal student loan forgiveness, check out this website: https://studentaid.ed.gov/repay-loans/forgiveness-cancellation.  It describes all forgiveness options in detail, including some partial payment plans.

For private student loan forgiveness, an attorney negotiated settlement is the best option. This is oftentimes called debt settlement. An attorney can negotiate with your creditors for a substantial reduction in the balance owed. Just like any other unsecured debt, a private student loan debt can be settled.

 

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Kevin Fallon McCarthy is the McCarthy Law PLC’s managing attorney and an experienced Phoenix debt attorney. Mr. McCarthy has also worked as general counsel for a large corporation. He has corporate counsel experience in human resource matters, general corporate governance, and union class action litigation.