Frequently Asked Questions

YES! Forgiveness programs are federal government programs. Federal student loans can be qualified for forgiveness programs, and they are for both subsidized and unsubsidized loans, consolidated or direct. Unfortunately, it does not apply to defaulted loans, loans would need to be taken out of default first to qualify for a program.

No! loan forgiveness programs do not take place automatically.  Borrowers need to apply for a program to have debts forgiven or lower their monthly payments.

You can refinance your federal loans into a private loan, however, the loans will no longer be eligible for any government benefits or programs.

Private student loans are not federal loans, which makes them ineligible for any federal forgiveness programs.

 The first day after you miss a payment: Your federal student loans are considered delinquent and you may be charged late fees.

90 days or more of not making a payment: Your servicer reports the delinquent account to the credit bureaus.

270 days of past-due payments: Your federal loan goes into default and your loans will be placed in collections. A collection fee of up to 20% can be applied to the principle of the loans.

• Your tax refunds will be held (your spouse's tax return will be withheld as well if you file jointly), and a portion of your wages, social security, Disability benefits, and retirement held to pay for the defaulted loans.
• Lose eligibility for loan benefits such as forbearance, deferment, government programs, and forgiveness programs.

Yes, but Depending on the severity of the default status on the loans.