If a borrower is incarcerated it can be very frustrating for those who are attempting to take care of their loans. This is because without a legal Power of Attorney they typically can’t act on behalf of the borrower due to privacy laws. There is a way though.
What you do:
First contact the student loan company and inform them the borrower is incarcerated. Have the following pieces of information:
Name of the borrower
Name and type of prison (example county, state, federal)
His or Her inmate number
What the servicer will do:
Typically what will be sent out to the borrower then is a prison packet that will include useful documents for the borrower in their situation. These usually include the following:
Third Party Authorization Form (so someone can find out account info)
Income Driven Repayment Application (most inmates will qualify for $0.00 payments)
Student Loan Debt Burden Forbearance Application (good for a year, keeps account current while IDR processes)
Ironically these are the same documents we send if a borrower will be a way for a year or two in the peace corps. But either way this is a great way to help those who may not be in the best position to help themselves and may cut down on some of the frustration.