Loan Forgiveness and Loan Discharge

 

You may qualify to have some or all of your loan balance waived. Your Federal Direct Student Loans, including Perkins loans, may be forgiven if you are on a qualified repayment plan and work in a specific field that meets certain eligibility requirements. Contact your loan servicer if you have specific questions about loan forgiveness.

 

If you have a Federal Direct Student Loan and you are employed by the government or a not-for-profit organization, you may qualify for forgiveness of some of your loan balance. The Department of Education has outlined the qualifications here.
If you have a Federal Direct Student Loan and you are employed by the government or a not-for-profit organization, you may qualify for forgiveness of some of your loan balance. The Department of Education has outlined the qualifications here.

 

In certain circumstances, you can be released from the responsibility of paying back loans, fees, and interest. A discharge can be granted for either Federal Direct or Perkins Loans. Reasons for awarding discharge are listed below. Contact your loan servicer if you have specific questions about loan discharge.

 

If your school (not just a campus) closes while you are enrolled or within 120 days after you withdraw, and you do not complete your program as a result, you may be eligible for loan discharge.
If you are unable to work or engage in substantial gainful activity due to a total and permanent disability, you may be eligible for discharge of your TEACH grants or Direct, FFEL, and Perkins loans. If you believe this applies to you, please visit disabilitydischarge.com.
If you are unable to work or engage in substantial gainful activity due to a total and permanent disability, you may be eligible for discharge of your TEACH grants or Direct, FFEL, and Perkins loans. If you believe this applies to you, please visit disabilitydischarge.com.
If a borrower of a federal student loan dies, the remaining debt can be discharged. For parent PLUS loans, if the student or parent passes away, the remaining debt may also be discharged. Some private loans offer discharge due to death.
If you have declared Chapter 7 or Chapter 13 bankruptcy, in order to potentially qualify for discharge of your federal student loan(s), you must participate in an adversary proceeding to prove undue hardship. Speak with your legal representative and lender to see if this option is available for your private student loan(s).
If your eligibility to receive a federal student loan was falsely certified by another person or entity, you may qualify for loan discharge.
If you withdrew from school but your school didn’t repay the refund it owed to the lender, discharge may be granted for the amount of the unpaid refund.
You may seek discharge if your school violated a state laws pertaining to educational services or student loans.