If you withdrew from your college or university degree program without graduating and had obtained a federal student loan in order to complete your education, you may be wondering if you still owe part of or the full balance of the loan once you are no longer a student. According to the FSA Collections website: here is what you need to do:
If you received a loan (on or after January 1, 1986) to pay for a period of enrollment at a school that you (or for parent PLUS borrowers, the student) did not attend, withdrew, or were terminated from, you may be eligible for discharge of some or all of your loan(s).
If the school was required to make a refund of your loan under federal regulations but failed to do so, you may be eligible for an unpaid refund discharge. Whether you qualify for a discharge and the amount that may be discharged will depend on your (or for parent PLUS borrowers, the student) dates of attendance at the school.
What to Do:
To apply for this discharge, you must complete and submit an unpaid refund discharge application form. You can request this form from the agency that holds your loan, or you can download it now. If you are not sure who holds your loan, check a recent demand letter or bill.
If the payment address on the letter or bill is the National Payment Center, P.O. Box 105028, Atlanta, GA 30348-5028, you should submit your completed form to:
UNITED STATES DEPARTMENT OF EDUCATION
FEDERAL STUDENT AID
Processing Division, Room 8601
50 Beale Street
San Francisco, CA 94105
You may also request a copy of this discharge application form by calling the following telephone number: 1-800-621-3115.