Sample Letters

Writing a Student Loan Hardship Letter (with Sample)

Student loans are a serious a part of life for a lot of students after they depart faculty. The most typical cause an individual can’t proceed to pay their student loans is as a result of they lose their job.

However, there are different the reason why an individual might must ship a student loan hardship letter together with:

  • A medical situation that forestalls them from incomes an earnings
  • Deployment within the army
  • Other money owed which might be excessive resembling a house mortgage
  • ​Bankruptcy


Get Relief from Student Loans

There are a number of methods an individual can get aid from their student loans. They can ask for a deferment of funds, cancellation of the loan, consolidation or restructuring. It is vital to contact their student loan service to seek out out for which type of hardship program they qualify.

A deferment is your best option for debtors who’ve non permanent monetary difficulties. This is a request to postpone making funds or for lowering the quantity of the funds.

For these asking for a deferment or every other hardship, you will need to proceed making common funds till the deferment is permitted. If the funds cease, the individual’s credit rating could also be lowered, and extra charges could also be added to the student loan.

Having the loan utterly forgive is another choice. A portion of the loan or all the loan may very well be cancelled. If this occurs, the student just isn’t answerable for repaying the cancelled quantity.

Provide Proof

The student might want to present proof that in the event that they proceed to make student loan funds, they won’t find the money for left to keep up a minimal lifestyle. They will even must show that their state of affairs is not going to quickly enhance.

READ:   Cancel Student Loans—Your Questions Answered

​​Forbearance is a chance if the student doesn’t qualify for a deferment. This means the student might cease making funds for a selected period of time resembling one 12 months. Interest will proceed to accrue.

Consolidation will assist the student decrease their month-to-month funds by extending the repaying phrases or decreasing the rate of interest. 

Extremely Rare

It is extraordinarily uncommon for the entire debt to be forgiven. This often solely occurs for individuals with the best monetary difficulties. The outcomes most students get are a discount of the rate of interest on the loan, longer reimbursement phrases or a part of the debt cancelled. 

The letter ought to clearly state what the applicant is asking for and the way lengthy they anticipate to be in monetary problem. They want to surround the paperwork required to show their monetary place together with tax paperwork and pay stubs in addition to any medical information required if the reason being due to poor well being or an harm.

​For those that default on student loans, it’s rather more tough to get future loans, which is why making use of for hardship credit ought to solely be a final resort.

Here is an instance of a student loan hardship letter. It ought to be despatched by licensed mail, so the sender has proof of the time it was despatched and acquired. Only copies of paperwork ought to be included. No authentic paperwork ought to be despatched. The sender ought to maintain a file of this and every other communication on this matter.

​Student Loan Hardship Letter Sample
Applicant’s Name
Applicant’s Address
City, State, Zip Code

READ:   Pay Off Student Loans Faster With These Calculators

DATE

Student Loan Provider’s Name
Student Loan Provider’s Address
City, State, Zip Code

To Whom It May Concern:

This letter is a proper request for a deferment for my student loan. I’m unable to proceed making funds as a result of I’ve misplaced my job and must work in a really low-paying job in the intervening time.

For the previous two years, I’ve made common funds on time and have each intention of repaying the loan when I’m in a greater monetary place.

​This just isn’t an try to keep away from the debt, however my present monetary circumstances make it extraordinarily tough for me to proceed making the funds I’ve made to this point.

I’ve enclosed paperwork that show my job state of affairs in addition to my monetary state of affairs.

I’d be completely satisfied to reply any questions or offer you extra info at a time that’s handy for you. I will be reached at 555-123-4567 or at [email protected]

I respect your consideration to this matter and hope for a good conclusion quickly.

Sincerely, 

Applicant’s signature
Applicant’s title printed
List of enclosures

By Andre Bradley

Related Articles