A couple of Facebook fans who recently heard me on the Russ Parr Show have asked me to elaborate on the Student Loan Cancellation Program.
Under federal law, you can get your federal student loans canceled or discharged for many different circumstances.
Reasons for loan discharge:
- Death
- Total and permanent disability
- School-related issues or improper certification by your school
- Full-time teaching or public service work
- Military service
- Bankruptcy
Before I explain the nuts and bolts of what’s required for these various loan cancellations, let me first say that there are a multitude of scenarios that won’t get you a loan discharge.
Reasons that won‘t get you a loan discharge:
- If you dropped out of school for any reason
- Experienced personal problems that forced you to abandon your studies
- Didn’t like your instructors
- Couldn’t get a job after graduation
- Were plagued by financial difficulties
- If you thought the quality of the instruction you received was sub-par
None of those reasons will hold weight with the Department of Education.
Perseverance Required
Let me also caution you that getting a student loan canceled or discharged is rare and often requires tremendous perseverance, know-how, and work on your part.
Having said that, even though obtaining a discharge can be a big hassle, it is nevertheless certainly worth the effort and frustration you may experience in the process.
For more details, below are some links to previous articles which I have written regarding this topic:
- How to Qualify for a Student Loan Cancellation or a Student Loan Discharge
- Student Loan Cancellation Due to Death
- Student Loan Cancellation Due To Disability
- Student Loan Cancellations for School-Related Issues and False Certification
- Student Loan Cancellations for Teaching and Community Service
- Student Loan Cancellation and Discharge for Military Service
- Student Loan Cancellations In Bankruptcy Are Rare – But Possible
- Law School Loan Forgiveness
