Under certain circumstances, all or a portion of your federal student loan debt can be discharged (cancelled) or forgiven. Your loan can’t be discharged because you didn’t like the school or the program of study, or because you didn’t find a job after completing the program of study.
Remember that your student loan is your obligation. Unless forbearance has been granted, you must continue to make payments until you receive written confirmation that discharge or forgiveness has been approved.
Quick Content LinksYou can download the necessary forms by visiting our 'Discharge Forms' page or 'Forgiveness Forms' page. Don’t forget to contact your lender to discuss your options!
• Teacher Loan Forgiveness Program
• Child Care Provider Loan Forgiveness
• Bankruptcy Discharge
• Death Discharge
• False Certification Discharge
• Forged Signature Discharge
• School Closure Discharge
• Unpaid Refund Discharge
• Total and Permanent Disability Discharge
• Who do I contact about loan discharge or forgiveness?
All or a portion of your student loan debt may be repaid if you're eligible for the Teacher Loan Forgiveness Program. Congress created the program in 1998 to encourage individuals to enter into and continue the teaching profession within designated elementary and secondary schools that serve low-income families.
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No new applications are being accepted for this program because no additional funding has been provided. Applications for renewal benefits are available if you have previously been granted forgiveness under this program.
All of your student loan obligations may be forgiven if you're eligible for the Child Care Provider Loan Forgiveness Program. You must be a new borrower on or after October 1, 1998, and meet the required criteria. If you qualify, the Department of Education will pay on a first-come, first-served basis, subject to the availability of funds.
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Bankruptcy doesn't automatically discharge your student loan debt. Your loans may only be discharged in a separate proceeding in the bankruptcy court called an Adversary Proceeding. The grounds for such a discharge require you to prove in a trial to the court that payment of your loans will result in an undue hardship on you and/or your dependents.
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Your student loan debt, as well as any PLUS loans your parents took out on your behalf, will be cancelled if documentation of your death is submitted to your loan holder. Acceptable documentation is an original death certificate, a certified copy of the original death certificate or an accurate and complete photocopy of the original or certified copy of the death certificate.
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Your loan can be discharged if you didn't have a high school diploma or its equivalent and the school didn't properly test you to measure your ability to benefit from the training, or you failed the test.
You may also be eligible for false certification discharge if you had a disqualifying status that prevented you from meeting the legal requirements of your state to enroll in the program or work in the career for which you were training, regardless of whether you had a high-school diploma or equivalent.
A loan may also be discharged if it was falsely certified in your name as a result of identity theft. To prove identity theft, you'll need to present reasonably persuasive evidence to the lender or guaranty agency. (There isn't an identity theft discharge application yet. We recommend you complete and submit the Federal Trade Commission’s ID Theft Affidavit). Contact your lender for information about additional documentation requirements.
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If you believe someone forged your signature on the loan application, promissory note or authorization for electronic funds transfer, you may qualify for a loan discharge. You must provide five different samples of your signature, with at least two of the samples on documents that are clearly dated within a year before or after the date of the contested signature.
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If you received a student loan at a school that closed before you completed your studies, you may be eligible for discharge of your loan. A federal student loan can be discharged for school closure if you were enrolled when the school closed and couldn't complete the program of study because of the closure. If you were on an approved leave of absence, you are considered to have been enrolled at the school. If the school closed within 90 days after you withdrew, you are also considered eligible for discharge.
You aren't eligible for a discharge if you are completing a comparable educational program at another school. If you complete a comparable program of study at another school after your loan is discharged, you may have to pay back the amount of the school closure discharge. If you haven't received a diploma or certificate but have completed all of the coursework for the program, you aren't eligible for the discharge.
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You may qualify for partial discharge of a student loan if your school failed to pay a tuition refund required under federal law. Only the amount of the unpaid refund will be discharged. You may qualify for this discharge regardless of whether the school is closed or open.
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Your student loan debt may be conditionally discharged and later forgiven if you become permanently disabled. The appropriate documentation verifying the permanent and total disability must be certified by your doctor and submitted to your lender within 90 days of the doctor's certification. If you've been determined by the Secretary of Veterans Affairs (VA) to be unemployable due to a service-connected condition, you may submit documentation from the VA.
If you receive a loan that was certified before the date your physician certified the discharge application, any proceeds of the loan that will be or are disbursed after the physician's certification must be cancelled or, if the disbursement was made, must be returned to the lender within 120 days of the disbursement date for you to maintain your discharge eligibility. If your loans are conditionally discharged, your loans will be assigned to the U.S. Department of Education for up to three years before your debt is permanently cancelled.
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If you think your loans are eligible for discharge or forgiveness, give OGSLP a call.
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