Status
Not open for further replies.

sw3708

New member
Joined
Sep 15, 2016
Messages
6
Reason
CALS
Country
US
State
MN
City
Roch
I hope this is posted in the correct area. My spouse was diagnosed with ALS early September. Does anyone here have experience getting federal student loans forgiven?

Any options on getting unsecured debt relieved? Such as credit card debt?

If student loan debt does not get discharged; is the persons estate (life insurance) required to pay it off?
 
I have no idea how things are in your country.

We got a credit card debt forgiven and another private school fees owing forgiven while Chris was still alive.

All other debts I had to absorb as his wife as debts are part of an estate the same as anything owned.
 
Yes to federal student loans. You can search for the exact programs covered. There is forgiveness for total permanent disability also for death.

Credit card would be up to the issuer. If the debt is in part due to poor judgement secondary to disease you might be able to have someone forgive part of it at least. My mother did not have debt but had signed up for some stupid credit card service that was charged monthly for over a year. When we explained they credited it all back
 
First, always keep up the payments. Be on time every time with the student loans.

There are several programs for reducing your burden. Ask the bank that gave you the loan.

If the credit card debt is going to make you default on a payments, because you have to choose between eating or making interest payments, you need to make a tough choice, whether to take advantage of the bankruptcy protection laws or simply quit paying your credit cards. There are ways to negotiate debt downward that might help. The big thing with credit cards is always stay in contact. If you don't pay, AND you don't answer the phone or the mail, they will sue and possibly get a judgment that will make life difficult even after you've recovered financially.
 
Student loan debt is fully discharged as long as it is Federal, not private student loans. You will have to pay taxes on the amount forgiven. You can go online and download a form from the Department of Education called Discharge Application: Total and Permanent Disability. You will need evidence of disability (SSDI letter and medical records showing a terminal condition will work.)

If I had student loan debt right now, I'd call and get a medical deferment and then apply for the discharge at the beginning of next year. That would push the tax liability into the following year and give you time to plan for it.
 
Thanks everyone for the information!
 
Status
Not open for further replies.
Back
Top