A friend asked me some questions about his defaulted student loan. He does not want to deal with the collection agency. He wants to bypass the agency & deal direct with U.S. Dept of Education ("ED"). He has not been successful in contacting with a specific caseworker with "ED" concerning a settlement for less than the full amount. His loans are between 10 to 20 years old.

Is there anyone who he can contact within "ED"? He hasn't been getting anywhere with the so called "ED" Customer service.

Is there a hardship discharge available in Ch 13 for student loans?


Thanks.
Jay

Good luck with that.

Seriously, no, there isn't, not unless you're fully disabled. Even being dying isn't enough.

I heard that is the only way to get out of paying, is being dead or disabled. I mean seriously, how does the dept of Ed collect from a dead person????

Dead will do it. Your relatives send a certified copy of a death certificate to them to review.

Disability may not do it either. Dept of Ed will offset a Social Security check to satisfy the loan.

DH got his discharged due to disability.

But dead or permanently disabled is the only option.

You can apply for an income contingent plan.

If you have problems, you can always call the Ombudsman's Offices in DC for direction on how to resolve the issues:

http://www.ombudsman.ed.gov/about/contactus.html

Good luck!

Same way other debts are collected: from the estate or spouse.

Fortunately, student loans expire on death or I'd still be paying off my late husband's.