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)
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% 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.
Download Form - Child Care
Provider Loan Forgiveness Form (PDF)
Download Form
- Child Care Provider Loan Forgiveness Forbearance Form (PDF)
Death
Your student loan debt, as well as any PLUS loans that your parents
took out on your behalf, will be cancelled if documentation of your death is
submitted to your loan holder.
False Certification (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 physical or 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.
Student loans cannot be discharged because you feel your institution provided a poor education or 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.
Download Form - Loan
Discharge Application: False Certification (Disqualifying Status) (PDF)
Download Form - Loan
Discharge Application: False Certification of Ability to Benefit (PDF)
Forged Signature (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.
Download Form - Loan Discharge Application: Unauthorized Signature/Unauthorized Payment (PDF)
School Closure
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.
Please 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 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.
Download Form - 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. Click here for more information about the Teacher Loan Forgiveness Program.
Download Brochure - "Stafford Loan Forgiveness Program for Teachers" (PDF)
Download Form - [English] Teacher
Loan Forgiveness Application (PDF)
Download Form - [Spanish] Teacher
Loan Forgiveness Application (PDF)
Download Form - [English] Teacher Loan
Forgiveness Forbearance Form (PDF)
Download Form - [Spanish] Teacher Loan
Forgiveness Forbearance Form (PDF)
Total and Permanent Disability
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 accepted by your loan holder. The loan holder may not approve
a request for the conditional discharge / cancellation for permanent and total
disability for a condition that existed before you applied for the loan unless
your doctor certifies that the condition substantially deteriorated after the
loan was approved. 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.
We suggest you send the form to OGSLP by certified mail and make at least two copies for your records.
Download Form - Loan Discharge Application: Total and Permanent Disability (PDF)