Student Loan Debt Relief for Incarcerated Borrowers
Federal student loan borrowers struggling or unable to make payments while incarcerated should know about the debt relief options described below. Borrowers and their families can also connect with the Student Borrower Protection Center for more information at 1025 Connecticut Ave NW, #717. Washington, DC 20036. The Student Borrower Protection Center does not provide legal representation to individual borrowers, but we will attempt to connect you with resources and additional support.
Federal Student Loan Debt “Write-Offs”
The Department has said it will “write-off” defaulted federally-held student loans of borrowers who have at least 10 or more years before they can be released, meaning they would no longer owe the loan. Borrowers should note that this write-off will make them ineligible for federal financial aid programs, such as Pell Grants. Borrowers whose loans are written off using this policy may later restore their eligibility for federal financial aid programs by making repayment arrangements with the Department to have their debt reinstated.
Incarcerated borrowers seeking to write-off their defaulted federal student loan debt should mail the following list of information to the Department at U.S. Department of Education PO Box 5609 Greenville, TX 75403-5609. The Department may also be reached at (903) 259-3877. This information should be provided on the prison’s letterhead and be signed by a prison official. The letter should include:
- Borrower’s full name
- Borrower’s Social Security number
- Borrower’s full date of birth
- Borrower’s inmate number
- Borrower’s release date or date of eligibility for parole (whichever is sooner)
- Contact information for a prison official able to verify the above information, including:
- Prison official’s name
- Prison official’s title
- Prison official’s phone number
- Prison official’s signature
Incarcerated borrowers’ loans cannot be retroactively written off. Borrowers must apply for a write-off while incarcerated and have at least 10 or more years before they can be released.
Temporarily Stop Collection of Federal Student Loans in Default
Borrowers who are incarcerated and behind on their federal student loan payments may be eligible to have collections activities paused until they are released. Incarcerated borrowers should ensure that the Department’s Default Resolution Group has verification of the borrower’s incarceration by mailing the following information, on the penal institution’s letterhead, to U.S. Department of Education Default Resolution Group P.O. Box 5609. Greenville, TX 75403-5609. The Default Resolution Group may also be reached at (903) 259-3877. Your letter should include:
- Borrower’s full name
- Borrower’s full date of birth
- Borrower’s earliest release date
- Prison or institution facility address
- Borrower’s social security number
- Borrower’s inmate number
- Borrower’s release date or date of eligibility for parole (whichever is sooner)
- Contact information for a prison official able to verify the above information, including:
- Prison official’s name
- Prison official’s title
- Prison official’s phone number
- Prison official’s signature
Income-Driven Repayment
Borrowers who are not behind on their loans may be able to enter a repayment plan where their monthly bills will be set based upon their income. For borrowers with no or very little income, the monthly payment amount on these plans can be as low as $0. Borrowers should also know that if their financial situation changes, they can request a recalculation of the monthly payment amount at any time. Importantly, borrowers who have no income when they apply can certify that they have no taxable income by simply checking a box on the form. Incarcerated borrowers who are not behind on their loans should enroll in an income driven repayment plan at https://studentaid.gov/idr/ as soon as possible.
More information about debt relief for incarcerated federal student loan borrowers is available at the National Consumer Law Center’s Student Borrower Assistance Project: Incarceration.
A non-exhaustive list of legal resources to assist student loan borrowers whose incomes fall below certain amounts is available at the National Consumer Law Center’s Legal Resources page.
To learn more about the unique challenges facing incarcerated student loan borrowers and what steps the Department of Education can take to solve them, read our report: Collection At All Costs: Examining the Intersection of Mass Incarceration and the Student Debt Crisis.