Student Loan Cancellation & Discharge
All loans received under programs authorized by Title IV, of the Higher Education Act can be canceled for several different circumstances including: (1) in the event of your death; or (2) if you become totally and permanently disabled after the loan is disbursed.
In addition, some loan types may qualify for loan discharge under a variety of conditions. Some of the most common cancellation provisions are listed for you below:
* the school you attended improperly certified your ability to benefit from the training given.
* the school you attended closed while you were in attendance or within 90 days after you withdrew from the school.
* A National Defense Student Loan can be canceled in 2 additional circumstances: (1) full-time teaching and (2) military service.
* Finally, your obligation to repay your loan may be discharged in bankruptcy.
Source: U.S. Department of Education
In: Student Loans · Tagged with: loan discharge