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Your Ultimate Guide to Student Loan Forgiveness

If you have borrowed money when you were still studying, you need to repay your loans even if you have not completed your education, cannot find a work related to your course, or even if you are unhappy with the education you paid for with your student loan. While this is the case, there are some circumstances that may forgive, cancel, or even discharge you from paying your student loan. There are different types of student loan forgiveness, cancellation, or discharge including Perkins loan cancellation and discharge, total and permanent disability discharge, discharge due to death, discharge in bankruptcy, closed school discharge, public service loan forgiveness, teacher loan forgiveness, false certification of student eligibility or unauthorized payment discharge, unpaid refund discharge, and borrower defense discharge.

Given the following circumstances, a student loan borrower can be qualified for a direct loan or FFEL Program: a victim of identity theft; the school falsely certified the eligibility of the applicant in order to obtain the student loan or the student eligibility requirements were not met but the school falsely certified that the student is eligible; the loan check was endorsed by the school without the student’s authorization, the application or promissory note was signed by the school with the student’s name without authorization, or signed the electronic funds transfer authorization without the knowledge of the student; and disqualification from employment in the job the individual was trained for because of age, physical or mental condition, or criminal record. If ever your school did not pay a refund that is owed to the lender or to the U.S. Department of Education upon your withdrawal from school, you can be discharged of your Direct loan or FFEL Program loan, but remember that only the unpaid refund will be discharged.

If you serve in certain types of public service or you are employed in certain occupations, you may qualify for Federal Perkins Loan Program, which is intended to cancel or discharge student loans including the following: teacher, nurse, medical technician, law enforcement, corrections officer, head start worker, child or family services worker, a volunteer in Peace Corps or action program (VISTA), member of the U.S. armed forces,and professional provider of early intervention services.

Certain types of cancellation are available to teachers, child care providers, nurses, military personnel, or borrowers who are affected by school closure, and you can contact a loan servicer or apply to the school that made the loan if you think you are qualified for loan forgiveness, discharge, or cancellation. You need to make payments while your loan is being reviewed to prevent it from accruing or going to default. If you need more info about student forgiveness loans, talk to us now.

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