How to Avoid Repaying Student Loans

The one thing that most graduating college seniors look forward to the least is repaying student loans. Aside from mortgages and car loans, student loans can account for the largest amount of debt that an individual will acquire. Depending on the amount borrowed, payments of these loans are comparable to if not more than an auto loan. It can become difficult to pay these loans back, especially if the recipient has not secured a job or substantial salary. Learn how to avoid paying student loans back immediately.

Instructions

How to Avoid Repaying Student Loans

1

Learn when the repayment period will begin. The first and most important step in understanding student loan repayment is knowing the terms of the loan. If the student loan belongs to a graduating senior, there may be a short automatic forbearance period before the loan payments begin. Before or during that period, contact the company or entity that issued the loan and ask for their cancellation policies in writing. A loan officer of the school may also be able to provide such documentation in an exit interview.

2

Determine what type of loan was distributed. If the loan was a federal loan, there are several methods of cancellation that can be performed to avoid repayment. If the loan was a state loan or other type, there are still forbearance and deferment and maybe even cancellation options available.

3

Apply for a discharge of the loan if a permanent or complete disability or death occurs. A discharge of the student loans can be requested as long as documentation or proof of the condition can be provided.

4

Avoid repaying student loans through career choice. By teaching, joining the military or Peace Corps, law enforcement or corrections and in some cases nursing and medical technician fields, a loan repayment can sometimes be avoided.

5

Request a discharge of a student loan if the school that awarded the loan closes. A loan recipient can avoid repaying student loans if the school closes both during and within 90 days after her enrollment.

6

File for bankruptcy and prove that repayment of the student loan would cause undue hardship. In order for the student loan to be canceled in this situation, you must be able to prove that the repayment of this loan would cause undue hardship.

7

Lastly, ask a student loan counselor if the school participates in online exit counseling services or if a personal interview can be scheduled. Research options with Federal Student Loan services as well as Stafford and Perkins Loans Services.