When Can Student Loans Be Discharged?

A federal student loan can be discharged, provided it meets the special conditions set by the by the Department of Education for a student financial aid to become eligible for a student loan cancellation. These are the lists of specific circumstances when students can apply for a student loan discharge:

In unfortunate events where the borrower or the student who is a recipient of a PLUS loan dies, the student loan is qualified to be discharged.

Borrowers who become permanently disabled can cancel their student loan payments through a medical certification and complying other requirements during a period of three years under a "conditional discharge.” If the borrower satisfies the federal government with its evidences of total physical incapacitation, his or her request for discharge will be granted.

The student will be free from repaying his or her loan obligation if the school where the borrower is enrolled has stopped its operation and closed before the student finishes the program.

If the school made unlawful actions like forging the borrower's signature on promissory notes or issuing a false certification on a loan where the applicant is not eligible, the borrower is not liable to repay the loan.

Individuals who commit their professional service to teaching in low-income community public schools can qualify for a teacher's loan cancellation. In addition, borrowers who are in the military service may also be eligible after meeting the requirements.


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