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Where Can I Get the Free List of Grants to Pay Off Student Loans? – Monica


“Dear Steve,

My husband went to ITT for school and got a good job. Two years later he lost it. That was when my son was born in 1990. We have not been able to pay back the school loan. We owe 65,000. ITT doubled the amount which was originally 34,000 because we could not pay it back. We can no longer get deferments, so we sit here two, almost 3 months behind in payments. We really need help.

Where can we get a grant to pay this back. Every site I have seen wants money for thier grant info, and we just don’t have it.


Dear Monica,

The reason everyone is charging you for a list of places to get free money in grants to pay off a student loan is because it is a bloody scam.

From what I remember, ITT Technical Institute makes available a combination of federal and private loans for school. I have no idea what type of loan he has.

The bottom line is that with deferments, the loan balance can easily double. The entire time it is being deferred, interest is building up, increasing the total amount due.

His best bet would be to contact the lender to workout an arrangement to repay. But he should also contact a local bankruptcy attorney to check if his student loans can be discharged in bankruptcy because they were taken out so long ago.

This is what the Department of Education has to say about this:

Effective October 8, 1998, your obligation to repay Title IV, HEA student loan and grant liabilities can no longer be canceled (discharged) due to bankruptcy, unless you can successfully prove that repayment of the debt would cause “undue hardship” as defined by case law in your jurisdiction. Previously, student loan and grant liabilities could only be canceled (discharged) due to bankruptcy under certain conditions which, in general, depended on the amount of time between the date on which a loan or grant liability was due or the date that the bankruptcy was filed, as well as undue hardship.

Effective May 28, 1991 and prior to October 8, 1998, a loan or grant liability was discharged by entry of a general discharge order if the first payment came due on the debt at least 7 years before the bankruptcy was filed. Prior to 1991 amendments, only five years was required. Any grace periods, forbearance, or deferment must be subtracted from the time elapsed between the first payment due date and the filing date when calculating time in repayment. Debts outstanding for less than the required seven year period could be discharged only if the court made an express finding that the repayment of the debt would place an “undue hardship” on the borrower. These non-dischargeability requirements apply to educational loans received by both student borrowers and by parent borrowers, and apply to loans received by any kind of borrower to pay off prior loans (Consolidation Loans). Dischargeability of these types of debts is governed by 11 U.S.C. 523 (a)(8). In order to determine the dischargeability of a loan, the servicing agency needs the following three pieces of information from you or your attorney:

  1. Notice of First Meeting of Creditors;
  2. List of Creditors (Schedule A-3); and
  3. the Final Discharge Order

You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

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About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.


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