Stafford Loan Discharge (Cancellation)

Borrowers may qualify for student loan discharge for a number of reasons, such as bankruptcy or disability. When a loan is discharged, the borrower is released from the obligation to repay all, or a selected portion, of the principal and interest of the loan.

You can apply for student loan discharge due to the following circumstances:

Reason for Discharge Description
School Closure Your school closed within 90 days of your enrollment and you were unable to finish your program of study.
Unpaid Refund You did not receive a refund that was due to you.
False Certification Your school did not properly qualify your status before you began studies.
Unauthorized Signature Your signature was forged.
False Certification of Ability to Benefit Your school did not properly evaluate your ability to benefit from the coursework before you began your studies.
Administrative Forbearance Your loan was falsely certified as a result of a crime of identity theft.
Total and Permanent Disability You became completely and permanently disabled or die.
Bankruptcy Your loan is discharged due to bankruptcy (typically, student loans are not dischargeable in a bankruptcy, therefore, you should consult your legal counsel).

Your loans may also be cancelled through a process called loan forgiveness. Learn more about student loan forgiveness and find out if you qualify.

How To Apply

To apply for any of the above, you will need to contact your loan servicer. Your servicer will provide you with the necessary paperwork and will determine if you qualify for any of these cancellations. To find out who services your loans, log in to the National Student Loan Data System (NSLDS) using your Federal Student Aid PIN.

For More Information

For additional information on loan cancellation and discharge please visit the U.S. Department of Education's website.