Loan Forgiveness

Forgiveness & Consolodation

If you are having problems making your student loan payments and have already explored all loan repayment plans two additional options to explore are consolidation and forgiveness.


Loan Consolidation

Loan consolidation is an option that combines all your federal student loans into one new loan with one monthly payment. Consolidation should be considered if you are at risk of student loan default.

What types of loans are eligible for consolidation?

  • Most federal student loans can be consolidated – learn more
  • Private student loans, like loans from NMEAF, cannot be consolidated.

What are the benefits of consolidation?

  • Simplifies all of your loan payments into just 1 monthly payment
  • Make smaller monthly payments
  • Extend repayment timeframe period
  • Combine all loans to one fixed interest rate

What are the disadvantages of consolidation?

  • You might pay more with increased interest
  • Loans will take longer to pay off
  • You might lose certain benefits (like interest rate discounts and loan forgiveness options) from your original loans

Learn more about loan consolidation


Loan Forgiveness

If you meet specific qualifications, certain federal student loans can be forgiven, cancelled or discharged. This means that your debt will be erased and you no longer have to make any payments. Private student loans are not eligible for forgiveness.

How can I get loan forgiveness?

  • If you are a Military Service Member, a Teacher or are in other qualifying non-profit Public Service jobs there are special programs for federal student loan forgiveness.
  • Perkins Loans have special loan cancellation programs
  • Loans can be forgiven if you are permanently disabled
  • Only in very rare cases are student loans discharged in bankruptcy

Learn more about loan forgiveness


Beware of Loan Consolidation and Forgiveness Scams

Unfortunately, many companies that offer student loan debt relief are trying to make money off people who need help with their student loans. You should never pay for help with a loan consolidation or forgiveness. The following loan assistance services are free:

  • Consolidating federal student loans
  • Lowering or postponing monthly payments (deferment and forbearance)
  • Changing repayment plans
  • Checking for eligibility for loan forgiveness