Loan Discharge (Cancellation) and Forgiveness
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 you didn’t get a job after completing the program of study.
Remember that your student loan is your obligation. Don’t stop making payments until you receive written confirmation from your loan holder that your student loan has been partially or entirely cancelled.
Who do I contact if my loans are potentially eligible for a loan discharge or forgiveness?
If your loan(s) are in repayment or you are enrolled in school, contact Customer Service at 405.234.4340 or 800.442.8642.
If your loan(s) are delinquent, contact Default Prevention at 405.234.4352 or 800.833.4973.
If your loan(s) are in default, contact Recoveries at 405.234.4375 or 800.522.8022.
Conditions that may qualify for loan discharge (cancellation) or forgiveness:
Bankruptcy (Undue Hardship) Discharge
Bankruptcy does not 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.
Child Care Provider Loan Forgiveness
Up to 100 percent of your student loan obligations may be forgiven, if you are 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 the borrower qualifies, the Department of Education will pay on a first-come, first-served basis, subject to the availability of funds. 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 the Child Care Loan Forgiveness Program.
Renewal of Benefits for Child Care Provider Loan Forgiveness Form (PDF)
Child Care Provider Loan Forgiveness Forbearance Form (PDF)
Historical Reference - Child Care Provider Loan Forgiveness Form (PDF)
Death Discharge
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.
False Certification Discharge (Disqualifying Status, Ability to Benefit & Identity Theft)
Your loan can be discharged if the school admitted you based on your ability to benefit from the training but you weren't properly tested to measure that ability or you failed the test. You may also be eligible for this type of discharge if you did not meet 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 General Education Diploma (GED).
Loans may also be discharged if the borrower's loan was falsely certified as a result of a crime of identity theft. Borrowers will need to present evidence that is reasonably persuasive to the lender or guaranty agency. (Please note that there is currently not a form for this type of false certification. Please contact your loan holder for documentation requirements.)
Student loans cannot be discharged because you feel your institution provided a poor education, had unqualified instructors or inadequate equipment. The U.S. Department of Education does not endorse the school's educational programs or guarantee that the school will deliver the services for which a student contracted. Therefore, this discharge cannot be granted if the school did not provide job placement or other services that it promised, or if you were not able to find a job in your field of study.
Loan Discharge Application: False Certification (Disqualifying Status) (PDF)
Loan Discharge Application: False Certification of Ability to Benefit (PDF)
Federal Direct Loan Program Forgiveness Program
Loan Forgiveness for Public Service Employees
Effective October 1, 2007, the College Cost Reduction and Access Act (CCRAA) created a new loan forgiveness program for public service employees. Under this program, the U.S. Department of Education will forgive the outstanding balance of principal and accrued interest on an eligible Federal Direct Loan Program (FDLP) loan (Direct Subsidized loan, Direct Unsubsidized loan, Direct PLUS loan, Direct Consolidation loan) for a borrower who is not in default and makes 120 monthly payments on the loan after October 1, 2007.
Effective July 1, 2008, a Federal Family Education Loan Program (FFELP) borrower may consolidate his or her FFELP loans into a FDLP Consolidation loan to be eligible to participate in the public service loan forgiveness program.
Forged Signature Discharge (Unauthorized Signature)
If you believed that someone at the school or another party, 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.
Loan Discharge Application: Unauthorized Signature/Unauthorized Payment (PDF)
School Closure Discharge
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 could not 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.
Bear in mind that you are not eligible for the 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 are not eligible for the discharge.
Loan Discharge Application: School Closure
Loan Discharge Application: School Closure (Spanish)
School Owes You a Refund (Unpaid Refund Discharge)
You may also qualify for partial discharge of a federal 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 refund regardless of whether the school is closed or open.
Loan Discharge Application: Unpaid Refund (PDF)
Teacher Loan Forgiveness
All or a portion of your student loan debt, up to $5,000, may be repaid if you are eligible for the Teacher Loan Forgiveness Program. However, if you are a teacher in certain specialties, up to $17,500 may be repaid. You must be a “new borrower” on or after October 1, 1998, and must teach for five consecutive, complete years and meet other criteria requirements. Learn more about this program on our Teacher Loan Forgiveness Program page.
Brochure: "Stafford Loan Forgiveness Program for Teachers" (PDF)
Teacher Loan Forgiveness Application [English] (PDF)
Teacher Loan Forgiveness Application [Spanish] (PDF)
Teacher Loan Forgiveness Forbearance Form [English] (PDF)
Teacher Loan Forgiveness Forbearance Form [Spanish] (PDF)
Total and Permanent Disability Discharge
Your student loan debt may be conditionally discharged and later cancelled if you become permanently disabled. The appropriate documentation verifying the permanent and total disability must be certified by your doctor and submitted to your loan holder within 90 days of the doctor’s certification. If you have 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 FFELP loan which was certified prior to 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 loan holder within 120 days of the disbursement date for you to maintain your discharge eligibility. If your loans are conditionally discharged, your loans will be permanently assigned to the U.S. Department of Education for a period that will last up to three years before your debt is completely cancelled.
Loan Discharge Application: Total and Permanent Disability (PDF)