According to The Wall Street Journal, more than 7,500 borrowers (with collective debt of 4 million) have applied for debt relief under a 1994 regulation including violation of applicable state law via an act or omission of the school as a defense against repayment. The Department has already agreed to cancel nearly million of Corinthian students' debt, the Journal reported.
Student loans usually appear on a credit report as multiple loans, but that doesn’t look bad to lenders.
The reason has to do with the way student loans actually work as opposed to how we think about them.
In reality, though, not that many people end up being eligible.
Requirements vary depending on the type of loan, but most offer forgiveness for those employed in certain public-service occupations.
That can help you meet your other financial obligations.
The trade off is that because you repay the debt over a much longer period, it will cost you more over time to repay, even at a lower interest rate.
To consolidate student loan debt, you get a single loan that is then used to pay in full your outstanding debt from the various lenders who provided you with student loans.
By doing so, you “consolidate” your student debt into a single loan.
The new loan typically has a longer repayment period, often as much as 15 years, but may have a lower interest rate.
The result is that you now have a single student loan payment that is lower than it was with multiple outstanding loans.
Even when you are applying through the same lender, you are basically taking out a new loan each semester or year.