It is still your obligation to pay for your student loan regardless if you have not finished your education, cannot find relevant job related to your program of study, or even if you’re unhappy with the course you paid with your loan. While this is the case, there are some circumstances that may forgive, cancel, or even discharge you from paying your student loan. There are different types of student loan forgiveness, cancellation, or discharge including Perkins loan cancellation and discharge, total and permanent disability discharge, discharge due to death, discharge in bankruptcy, closed school discharge, public service loan forgiveness, teacher loan forgiveness, false certification of student eligibility or unauthorized payment discharge, unpaid refund discharge, and borrower defense discharge.
There are those may qualify for a direct loan or FFEL Program student loan discharge given the following circumstances: you were a victim of identity theft; the school falsely certified your eligibility in order to receive the student loan or the student eligibility requirements were not met but the school falsely certified that you are; the loan check was endorsed by the school without your authorization, the application or promissory note was signed by the school with your name without your authorization, or signed your electronic funds transfer authorization without your awareness and knowledge; and disqualification from employment in the job you were trained because of age, physical or mental condition, or criminal record. It is also possible to be discharged from your Direct loan or FFEL Program loan if the school did not pay a refund to the U.S. Department of Education upon you withdraw from school.
The Federal Perkins Loan Program is intended to cancel or discharge student loans for individuals who are performing certain types of public service or those who are employed in certain occupations such as a volunteer in Peace Corps or action program (VISTA), teacher, member of the U.S. armed forces, nurse, medical technician, law enforcement, corrections officer, head start worker, child or family services worker, and professional provider of early intervention services.
If you think you are qualified for loan forgiveness, discharge, or cancellation, then contact a loan servicer or apply to the school that made the loan, and you might be eligible for a complete cancellation if you are a teacher, childcare provider, nurse, military personnel, or a borrower who are affected by school closure. You need to make payments while your loan is being reviewed to prevent it from accruing or going to default. If you need more info about student forgiveness loans, talk to us now.