With the help of Freedom Loan Resolution and our expert debt validation counselors, you too can experience debt relief through the legal process of debt validation. Let us work with you to force the debt collectors to prove you legally owe the debt they are trying to collect on and that the amount is valid. If not, you can get the relief you need.
FreedomLRS is a private company, and is NOT AFFILIATED WITH THE DEPARTMENT OF EDUCATION or any other academic or governmental entity.
You can apply for loan consolidation, without paid assistance.
FreedomLRS helps you to prepare and process the application for student loan consolidation and repayment programs offered by the DOE.
FreedomLRS is not a loan servicer, and does not provide debt relief services, including renegotiating, settling, or in any way altering the terms of payment or debt.
If you are an existing FLRS client and need assistance please contact student support:
1 (888) 780-6225
When can my federal student loans beforgiven, canceled, or discharged?
You must repay your loans even if you don’t complete your education, can’t find a job related to your program of study, or are unhappy with the education you paid for with your loan. You also can’t claim that you have no responsibility for repaying your loan because you were a minor (under the age of 18) when you signed your promissory note or received the loan. However, certain circumstances might lead to your loans being forgiven, canceled, or discharged.
The list below is a quick view of the types of forgiveness, cancellation, and discharge available for the different types of federal student loans.
Public Service Loan Forgiveness
If you want to qualify for Public Service Loan Forgiveness now or in the future, complete and submit the Employment Certification form as soon as possible. Too many borrowers wait to submit this important form until they have been in repayment for several years, at which point they learn that they have not been making qualifying payments. In order to ensure you’re on track to receive forgiveness, you should continue to submit this form both annually and every time you switch employers.
Teacher Loan Forgiveness
Perkins Loan Cancellation (includes Teacher Cancellation)
Perkins Loan Teacher Cancellation
What are the eligibility requirements? Who is considered a teacher? How long must I teach? What amount can be canceled for teaching service?
What are the eligibility requirements?
You qualify for cancellation of up to 100 percent of a Federal Perkins Loan if you have served full-time in a public or nonprofit elementary or secondary school system as a
- teacher in a school serving students from low-income families;
- special education teacher, including teachers of infants, toddlers, children, or youth with disabilities; or
- teacher in the fields of mathematics, science, foreign languages, or bilingual education, or in any other field of expertise determined by a state education agency to have a shortage of qualified teachers in that state.
Eligibility for teacher cancellation is based on the duties presented in an official position description, not on the position title. To receive a cancellation, you must be directly employed by the school system. There is no provision for canceling Federal Perkins Loans for teaching in postsecondary schools.
Note that you also qualify for deferment while you’re performing teaching service that qualifies for cancellation. Contact your college or your college’s Perkins Loan servicer for information on applying for deferment.
Who is considered a teacher?
A teacher is someone (including for example, a school librarian or guidance counselor) who provides elementary or secondary school students with direct services directly related to classroom teaching.
Total and Permanent Disability Discharge
Federal student loans will be discharged due to the death of the borrower or of the student on whose behalf a PLUS loan was taken out.
What happens to my loans if I die? What happens to my parent’s PLUS loan if my parent dies or if I die? What proof of death is needed to discharge a loan?
Bankruptcy Discharge (in rare cases)
What circumstances do I need to prove to have my loan discharged in bankruptcy? How do bankruptcy courts determine undue hardship? What happens to my loan if the bankruptcy court determines repayment would cause undue hardship? What can I do if the bankruptcy court doesn’t discharge my loans but I can’t afford the payments?
What circumstances do I need to prove to have my loan discharged in bankruptcy?
You must declare Chapter 7 or Chapter 13 bankruptcy and demonstrate that repayment would impose undue hardship on you and your dependents. This must be decided in an adversary proceeding in bankruptcy court. Your creditors may be present to challenge the request.
How do bankruptcy courts determine undue hardship?
The bankruptcy courts do not use a single test to determine undue hardship but may look at the following factors to determine whether requiring you to repay your loans would cause an undue hardship:
- If you are forced to repay the loan, you would not be able to maintain a minimal standard of living.
- There is evidence that this hardship will continue for a significant portion of the loan repayment period.
- You made good faith efforts to repay the loan before filing bankruptcy.
What happens to my loan if the bankruptcy court determines repayment would cause undue hardship?
It depends on the terms of the bankruptcy court’s determination. The terms may include the following:
- Your loan may be fully discharged, and you will not have to repay any portion of your loan. All collection activity will stop.
- Your loan may be partially discharged, and you will still be required to repay some portion of your loan.
- You may be required to repay your loan, but with different terms, such as a lower interest rate.
What can I do if the bankruptcy court doesn’t discharge my loans but I can’t afford the payments?
Many different repayment plans exist, and switching to a plan that’s a better fit is usually a possibility. Contact your loan servicer if you would like to discuss repayment plan options or change your repayment plan. You can get information about all of the federal student loans you have received and find the loan servicer for your loans by logging in to “My Federal Student Aid.”
Closed School Discharge
Note that you might need your academic records if you plan to attend another school and want to have your coursework at the closed school taken into consideration. So it will be important for you to obtain your academic and financial aid records if your school closes. Contact the state licensing agency in the state in which the school was located to ask whether the state made arrangements to keep the records. The records might also be useful in substantiating your claim for a loan discharge.
False Certification of Student Eligibility or Unauthorized Signature/Unauthorized Payment Discharge
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Debt Resolution Disclaimer
Freedom Loan Resolution makes no promises or guarantees that we can lessen or eliminate any debt, alleged or not that you may owe. The averages that we state are based on prior results. These results will vary depending on your unique enrolled creditors and tailored program terms. Fees for debt reduction are specific to the individual enrolled. The term of the program will be determined during your free consultation. Not every member is able to successfully complete the program for a wide range of reasons. We do not guarantee results or that your debts will be resolved for a specific percentage or within a specific time frame. We do not assume your debts, provide tax advice, bankruptcy advice or accounting advice. Our service is not available in all states. If you are unsure if we service your state, please inquire with our member success team. The fees that we charge may vary depending the state in which you reside. Please contact your accountant to discuss the tax implications that you may experience after debt settlements programs. Please be sure to read and understand all enrollment information prior to enrolling into our program. Debt reduction will likely adversely affect your credit score, may result in you being sued by creditors and/or collection agencies. In addition, your balances may increase while in the debt reduction program due to fees and interest accruals. Once a resolution is successfully executed by us on your behalf, the debt is satisfied.