Writing a Student Loan Hardship Letter (with Sample)
Use this sample student loan hardship letter as a template for your formal hardship letter.
Last updated on July 28th, 2022
Student loans are a major part of life for many students when they leave college. The most common reason a person can’t continue to pay their student loans is because they lose their job.
However, there are other reasons why a person may need to send a student loan hardship letter including:
Get Relief from Student Loans
There are several ways a person can get relief from their student loans. They can ask for a deferment of payments, cancellation of the loan, consolidation or restructuring. It is important to contact their student loan service to find out for which kind of hardship program they qualify.
A deferment is the best choice for borrowers who have temporary financial difficulties. This is a request to postpone making payments or for reducing the amount of the payments.
For those asking for a deferment or any other hardship, it is important to continue making regular payments until the deferment is approved. If the payments stop, the person’s credit score may be lowered, and additional fees may be added to the student loan.
Having the loan completely forgive is another option. A portion of the loan or the entire loan could be cancelled. If this happens, the student is not responsible for repaying the cancelled amount.
However, there are other reasons why a person may need to send a student loan hardship letter including:
- A medical condition that prevents them from earning an income
- Deployment in the military
- Other debts that are high such as a home mortgage
- Bankruptcy
Get Relief from Student Loans
There are several ways a person can get relief from their student loans. They can ask for a deferment of payments, cancellation of the loan, consolidation or restructuring. It is important to contact their student loan service to find out for which kind of hardship program they qualify.
A deferment is the best choice for borrowers who have temporary financial difficulties. This is a request to postpone making payments or for reducing the amount of the payments.
For those asking for a deferment or any other hardship, it is important to continue making regular payments until the deferment is approved. If the payments stop, the person’s credit score may be lowered, and additional fees may be added to the student loan.
Having the loan completely forgive is another option. A portion of the loan or the entire loan could be cancelled. If this happens, the student is not responsible for repaying the cancelled amount.
Provide Proof
The student will need to provide proof that if they continue to make student loan payments, they will not have enough money left to maintain a minimal standard of living. They will also need to prove that their situation will not soon improve.
Forbearance is a possibility if the student doesn’t qualify for a deferment. This means the student may stop making payments for a specific amount of time such as one year. Interest will continue to accrue.
Consolidation will help the student lower their monthly payments by extending the repaying terms or lowering the interest rate.
Extremely Rare
It is extremely rare for the whole debt to be forgiven. This usually only happens for people with the greatest financial difficulties. The results most students get are a reduction of the interest rate on the loan, longer repayment terms or part of the debt cancelled.
The letter should clearly state what the applicant is asking for and how long they expect to be in financial difficulty. They need to enclose the documents required to prove their financial position including tax documents and pay stubs as well as any medical records required if the reason is because of poor health or an injury.
For those who default on student loans, it is much more difficult to get future loans, which is why applying for hardship credit should only be a last resort.
Here is an example of a student loan hardship letter. It should be sent by certified mail, so the sender has proof of the time it was sent and received. Only copies of documents should be included. No original documents should be sent. The sender should keep a record of this and any other communication in this matter.
The student will need to provide proof that if they continue to make student loan payments, they will not have enough money left to maintain a minimal standard of living. They will also need to prove that their situation will not soon improve.
Forbearance is a possibility if the student doesn’t qualify for a deferment. This means the student may stop making payments for a specific amount of time such as one year. Interest will continue to accrue.
Consolidation will help the student lower their monthly payments by extending the repaying terms or lowering the interest rate.
Extremely Rare
It is extremely rare for the whole debt to be forgiven. This usually only happens for people with the greatest financial difficulties. The results most students get are a reduction of the interest rate on the loan, longer repayment terms or part of the debt cancelled.
The letter should clearly state what the applicant is asking for and how long they expect to be in financial difficulty. They need to enclose the documents required to prove their financial position including tax documents and pay stubs as well as any medical records required if the reason is because of poor health or an injury.
For those who default on student loans, it is much more difficult to get future loans, which is why applying for hardship credit should only be a last resort.
Here is an example of a student loan hardship letter. It should be sent by certified mail, so the sender has proof of the time it was sent and received. Only copies of documents should be included. No original documents should be sent. The sender should keep a record of this and any other communication in this matter.
Student Loan Hardship Letter Sample
Applicant’s Name
Applicant’s Address
City, State, Zip Code
DATE
Student Loan Provider’s Name
Student Loan Provider’s Address
City, State, Zip Code
To Whom It May Concern:
This letter is a formal request for a deferment for my student loan. I am unable to continue making payments because I have lost my job and need to work in a very low-paying job for the time being.
For the past two years, I have made regular payments on time and have every intention of repaying the loan when I am in a better financial position.
This is not an attempt to avoid the debt, but my current financial circumstances make it extremely difficult for me to continue making the payments I have made so far.
I have enclosed documents that prove my job situation as well as my financial situation.
I would be happy to answer any questions or give you more information at a time that is convenient for you. I can be reached at 555-123-4567 or at [email protected]
I appreciate your attention to this matter and hope for a favorable conclusion soon.
Sincerely,
Applicant’s signature
Applicant’s name printed
List of enclosures
By Andre Bradley
Interesting Finds
Student Loan Hardship Letter Sample
Applicant’s Name
Applicant’s Address
City, State, Zip Code
DATE
Student Loan Provider’s Name
Student Loan Provider’s Address
City, State, Zip Code
To Whom It May Concern:
This letter is a formal request for a deferment for my student loan. I am unable to continue making payments because I have lost my job and need to work in a very low-paying job for the time being.
For the past two years, I have made regular payments on time and have every intention of repaying the loan when I am in a better financial position.
This is not an attempt to avoid the debt, but my current financial circumstances make it extremely difficult for me to continue making the payments I have made so far.
I have enclosed documents that prove my job situation as well as my financial situation.
I would be happy to answer any questions or give you more information at a time that is convenient for you. I can be reached at 555-123-4567 or at [email protected]
I appreciate your attention to this matter and hope for a favorable conclusion soon.
Sincerely,
Applicant’s signature
Applicant’s name printed
List of enclosures
By Andre Bradley
Interesting Finds