It is possible to have your student loan debt discharged (canceled) or reduced, but only under certain specific circumstances:
- You die or become totally and permanently disabled.
- Your school closed before you could complete your program.
- For FFEL and Direct Stafford Loans only: Your school owes you a refund, forged your signature on a promissory note, or certified your loan even though you didn't have the ability to benefit from the coursework.
- You work in certain designated public school service professions (including teaching in a low-income school).
- You file for bankruptcy. (This cancellation is rare and occurs only if a bankruptcy court rules that repayment would cause undue hardship.)
Discharge provisions differ depending on whether you have a Federal Perkins Loan, a Federal Stafford Loan, or a Federal PLUS Loan. For more specifics on discharges, click here.
Loan cancellation and forgiveness forms may be obtained on the USAFunds website.