How to Get Your Student Loan Reduced

The economic recession that began in 2007 resulted in large numbers of unemployed workers. As reported by the Bureau of Labor Statistics within the U.S. Department of Labor in June of 2011, there were over 14.1 million unemployed Americans -- equivalent to a 9.2 percent unemployment rate of the nation's total workforce. To help students, graduates and their parents during times of financial difficulty, the U.S. Department of Education allows qualified individuals a way to apply for loan reductions, loan forgiveness and loan forbearance.

Instructions

1

Apply for a loan deferment with the U. S. Department of Education if you are in school on at least a part-time basis, if you are experiencing an economic hardship or if you are in the U.S. military on an active service basis or reserves.

2

Contact the school where you applied for your federal Perkins loan to obtain a deferment. For Stafford and Direct loans, contact your loan servicer. Use the Department of Education's National Student Loan Data System to search for your loan servicer.

3

Contact the U.S. Department of Education by calling its toll-free Federal Student Aid Information Center if you are not a part-time student or not in the military. Ask about the federal loan deferment program based on economic hardship. The department provides a free informational service to students and their parents on how to apply for a reduced loan repayment program or deferment based on economic hardship.

4

Switch repayment plans by contacting the toll-free information center hotline. The Department of Education allows those experiencing economic hardship to pay their loans under different plans. These reduction repayment plans often allow students and graduates to repay their loans at lower monthly payments.

5

Apply for a federal loan forgiveness program if you perform public volunteer services or work in the public education sector. Additionally, military service members can apply for loan forgiveness. There are at least one dozen federal loan forgiveness programs, and you will have to apply for the specific program designated for the type of public service you perform.