I am a senior with student loan debts. What help can I receive? – Legal Aid Society of Cleveland (2024)

FAQs

Are student loans forgiven after age 65? ›

Are student loans written off at 65 or a certain age? Unlike our siblings in England, Ireland, and Scotland, the Education Department doesn't write off student debt when borrowers turn 65 years of age. Unfortunately, American lawmakers haven't provided student loan borrowers with age-based forgiveness.

To be eligible, your annual income must have fallen below $125,000 (for individuals) or $250,000 (for married couples or heads of households). If you received a Pell Grant in college and meet the income threshold, you will be eligible for up to $20,000 in debt relief.

There is no specific age when students get their loans written off in the United States, but federal undergraduate loans are forgiven after 20 years, and federal graduate school loans are forgiven after 25 years.

To stay eligible for student aid, you'll need to keep making your loan payment each month. If you miss a payment after your eligibility is reinstated, you'll become ineligible for student aid again. If this happens, your only option to get more student aid will be to get out of default. Was this page helpful?

It is a circ*mstance in which the annual amount due on your eligible loans, as calculated under a 10-year Standard Repayment Plan, exceeds 15 percent (for IBR) or 10 percent (for Pay As You Earn) of the difference between your adjusted gross income (AGI) and 150 percent of the poverty line for your family size in the ...

By law, Social Security can take retirement and disability benefits to repay student loans in default. Social Security can take up to 15% of a person"s benefits. However, the benefits cannot be reduced below $750 a month or $9,000 a year. Supplemental Security Income (SSI) cannot be offset to repay these debts.

In most cases, the Fair Credit Reporting Act (FCRA) allows derogatory items like defaulted debts or collection accounts to stay on your credit report for up to seven years. Because federal student loans do not have a statute of limitations, these negative accounts can remain on your credit report indefinitely.

Both federal and private student loans fall off your credit report about seven years after your last payment or date of default. You default after nine months of nonpayment for federal student loans, and you're not in deferment or forbearance.

More than 3.5 million Americans at or above the age of 60 hold student loan debt, collectively amounting to over $125 billion, per 2023 data from the think tank New America that lawmakers cited.

Student loan cancellation programs

Perkins loan cancellation. Borrowers with federal Perkins loans can have up to 100% of their loans canceled if they work in a public service job for five years. In many cases, approved borrowers will see a percentage of their loans discharged incrementally for each year worked.

Can I still get grants if I owe student loans? ›

The short answer is that, yes, it is possible to get a grant to help you pay off your student loan debt. Unlike loans, grants don't need to be paid back (unless, of course, there was an expectation of a service or some other commitment to receive the grant and you didn't follow through).

No, there's no age limit. Almost everyone is eligible for some type of federal student aid. The adult student still needs to complete the FAFSA form, and make sure not to miss any deadlines, just like any other student.

Borrowers who have reached 20 or 25 years (240 or 300 months) worth of eligible payments for IDR forgiveness will see their loans forgiven as they reach these milestones. ED will continue to discharge loans as borrowers reach the required number of months for forgiveness.

If you have Parent PLUS Loans, Federal Family Education Loans (FFELs), or Perkins Loans, you aren't eligible for IDR forgiveness with your loans in their current form. However, you may be able to gain eligibility by consolidating your loans with a federal Direct Consolidation Loan.