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"Forgiveness, cancellation, or discharge of your loan means that you are no longer required to repay some or all of your loan."

Federal Student Aid Office - Department of Education, 2018

2018 List of Student Loan Programs Forgiveness, Cancelation, and Discharge Options

 

  • Public Service Loan Forgiveness (PSLF) Program

  • Teacher Loan Forgiveness Program

  • Perkins Loan Cancellation

  • False Certification of Student Eligibility Discharge

  • Total and Permanent Disability (TPD) Discharge

  • Unpaid Refund Discharge

  • Closed School Discharge

  • Bankruptcy Discharge

  • Death Discharge

Public Service Loan Forgiveness Basics

 

Get Student Loan Forgiveness!

What, When, How and Who Can Be Helped?

 

  • PSLF forgives the balance on your Direct Loans,
  • After you have made 120 qualifying monthly payments,
  • Must have been working full-time for a qualifying employer,
  • All 120 payments have been made under qualifying repayment plan.
You may still be eligible for loan forgiveness if your Public Service Loan Forgiveness (PSLF) application is denied because some or all of your payments were not made under a qualifying repayment plan for PSLF. Federal Student Aid Office

US Department of Education

Teacher Loan Forgiveness Basics

 

Get Student Loan Forgiveness!

What, How Much, When and Who Can Get It?

 

  • TLF Program forgives up to $17,500 on your Direct Subsidized and Unsubsidized Loans and your Subsidized and Unsubsidized Federal Stafford Loans,
  • Requires teaching full-time for five complete and consecutive academic years and,
  • Must have been teaching as a highly qualified teacher and,
  • Must have been employed in a low-income school or educational service agency.
Under the Teacher Loan Forgiveness Program, if you have a Direct Consolidation Loan or a Federal Consolidation Loan, you may be eligible for forgiveness of the outstanding portion of the consolidation loan that repaid an eligible Direct Subsidized Loan, Direct Unsubsidized Loan, Subsidized Federal Stafford Loan, or Unsubsidized Federal Stafford Loan. Federal Student Aid Office

US Department of Education

Federal Perkins Loan Cancelation Basics

 

Get Your Student Perkins Loan Canceled!

What, How Much, When and Who Can Get It?

 

  • Cancels up to 100% of your a Federal Perkins Loan but,
  • Requires serving full-time in a public or nonprofit elementary or secondary school system as a
    • teacher in a school serving students from low-income families;
    • special education teacher, including teachers of infants, toddlers, children, or youth with disabilities; or
    • teacher in the fields of mathematics, science, foreign languages, or bilingual education, or in any other field of expertise determined by a state education agency to have a shortage of qualified teachers in that state.

 

  • Full or partial Perkins Loan cancellation available for the following employment or service;
    • Firefighter,
    • Public defender,
    • Military service,
    • Law enforcement officer,
    • A nurse or medical technician,
    • Early childhood education provider,
    • An employee at a child or family services agency,
    • A faculty member at a tribal college or university,
    • Librarian with master’s degree at Title I school,
    • Volunteer service (AmeriCorps VISTA or Peace Corps),
    • A speech pathologist with a master’s degree at Title I schools,
    • Professional provider of early intervention (disability) services.
Federal Perkins Loan cancellation is based on eligible employment or eligible volunteer service and the length of time that you were in such a position.

You may be eligible to have all or a portion of your Federal Perkins Loan canceled based on your employment or volunteer service. Federal Student Aid Office

US Department of Education

False Certification of Student Eligibility Discharge Basics

 

Get Your Student Loan Discharged!

What, How, When, and Who Can Get It?

 

  • False Certification of Student Eligibility Discharge option may cancel the following federal student loans:
    • Direct Loan,
    • Federal Family Education Loan (FFEL).
  • Requirements for federal loan discharge under the False Certification of Student Eligibility option:
    • Ability to Benefit – Your school falsely certified your eligibility to receive the loan based on your ability to benefit from its training, and you did not meet the ability-to-benefit student eligibility requirements;
    • Disqualifying Status – The school certified your eligibility, but because of a physical or mental condition, age, criminal record, or other reason, you would not meet state requirements for employment in the occupation in which you were being trained;
    • Forgery – The school signed your name on the application or promissory note without your authorization, or the school endorsed your loan check or signed your authorization for electronic funds transfer without your knowledge;
    • Identity Theft – Your eligibility to receive a loan was falsely certified because you were a victim of identity theft.
You may be eligible for a discharge of your Direct Loan or FFEL Program loan if your school falsely certified your eligibility to receive the loan based on your ability to benefit from its training, and you did not meet the ability-to-benefit student eligibility requirements (for example, you did not have a high school diploma or General Educational Development certificate). Federal Student Aid Office

US Department of Education

Total and Permanent Disability (TPD) Discharge Basics

 

TPD? Get Your Student Loan Discharged!

What, How, When, and Who Can Get It?

 

  • TPD discharge option relieves you from the repayment of any of the following federal student loans and obligations:
    • William D. Ford Federal Direct Loan,
    • Federal Family Education Loan (FFEL),
    • Federal Perkins Loan and/or,
    • TEACH Grant service obligation
  • TPD student loan discharge requirements:
    • You must complete and submit a TPD discharge application,
    • You must submit documentation showing that you meet the requirements for being considered TPD (totally and permanently disabled).
We work with the VA and the SSA to identify those who qualify for a discharge based on their status with the VA or the SSA. If we receive information from the appropriate agency indicating that you qualify for a TPD discharge, we’ll send you a letter notifying you of your eligibility for discharge, along with a TPD discharge application. If you want to apply for a TPD discharge, all you need to do is complete and submit the discharge application, without having to provide any additional documentation of your eligibility for discharge. Federal Student Aid Office

US Department of Education

Federal Loan Unpaid Refund Discharge Basics

 

Find Out If  Your Student Loan May Be Partially Discharged!

What, How, When, and Who Can Get It?

 

  • Unpaid Refund Discharge option is available for the following federal student loans:
    • Direct Loan,
    • Federal Family Education Loan (FFEL).
  • Federal Loan Unpaid Refund Discharge requirements:
    1. You withdraw from school after receiving a loan and,
    2. Your school is required to return part of your loan money and,
    3. The school did not return the portion of your loan that it was required to return under applicable laws and regulations.
Check with the school to see how refund policies apply to federal aid at the school. Only the amount of the unpaid refund will be discharged. Contact your loan servicer for more information. Federal Student Aid Office

US Department of Education

Closed School Student Loan Discharge Basics

 

Your School Closed?

Find Out If Your Student Loan Can Be Discharged!

What, How, When, and Who Can Get It?

 

  • Closed School Student Loan Discharge makes you 100% eligible for full discharge on your federal student loan such as:
    • William D. Ford Federal Direct Loan,
    • Federal Family Education Loan (FFEL),
    • Federal Perkins Loan.
  • Requirements for Closed School Student Loan Discharge:
    • You were unable to complete your program because your school closed;
    • You were enrolled when your school closed;
    • You were on an approved leave of absence when your school closed; or
    • Your school closed within 120 days after you withdrew.
If your school closes while you’re enrolled or soon after you withdraw, you may be eligible for discharge of your federal student loan.

You may be eligible for a 100 percent discharge of your William D. Ford Federal Direct Loan (Direct Loan) Program loans, Federal Family Education Loan (FFEL) Program loans, or Federal Perkins Loans if you were unable to complete your program because your school closed. Federal Student Aid Office

US Department of Education

Bankruptcy Discharge of Federal Student Loan Basics

 

Can Be Decided By Bankruptcy Court Only!

What, How, When, and Who Can Get It?

 

  • Your federal student loan may be discharged by a bankruptcy court when:
    • You declare Chapter 7 or Chapter 13 bankruptcy and,
    • You demonstrate that repayment would impose an undue hardship on you and your dependents and,
    • You file a separate action, known as an “adversary proceeding,” requesting the bankruptcy court find that repayment would impose an undue hardship on you and your dependents.
You may have your federal student loan discharged in bankruptcy only if you file a separate action, known as an “adversary proceeding,” requesting the bankruptcy court find that repayment would impose an undue hardship on you and your dependents. Federal Student Aid Office

US Department of Education

Federal Student Loan Discharge Due To Death

 

 

  • If you die, then your federal student loans will be discharged after the required proof of death is submitted. The loan will be discharged if a family member or other representative provides the loan servicer acceptable documentation of the borrower’s or parent’s death.
  • Acceptable documentation includes:
    • an original death certificate,
    • a certified copy of the death certificate, or
    • an accurate and complete photocopy of one of those documents.

For more information about documentation requirements, contact your loan servicer.

Federal student loans will be discharged due to the death of the borrower or of the student on whose behalf a PLUS loan was taken out.

Federal Student Aid Office

US Department of Education