Student Loan Discharge Options
There are also several loan discharge options available to borrowers who meet certain criteria. A loan discharge cancels your obligation to repay all or part of your loan. Here are some common types of loan discharge options:
Total and Permanent Disability (TPD) Discharge
If you’re unable to work due to a total and permanent disability, you may be eligible for a TPD discharge. To apply for a TPD discharge, you’ll need to submit a TPD Discharge Application and supporting documentation, such as a certification from a doctor.
Closed School Discharge
If your school closes while you’re enrolled or shortly after you withdraw, you may be eligible for a closed school discharge. To apply for a closed school discharge, you’ll need to complete a Closed School Loan Discharge Application and submit it to your loan servicer.
Borrower Defense to Repayment Discharge
If you took out a student loan to attend a school that engaged in misconduct or made false or misleading statements to you, you may be eligible for borrower defense to repayment discharge. To apply for a borrower defense to repayment discharge, you’ll need to complete a Borrower Defense to Repayment Application and submit it to your loan servicer.
If you die, your student loans may be discharged. Your loan servicer will require documentation, such as a death certificate, to process the discharge.
In rare cases, you may be able to discharge your student loans through bankruptcy. However, it’s important to note that student loans are difficult to discharge through bankruptcy and you’ll need to meet strict eligibility requirements.
Other Discharge Options
There may be other circumstances under which you may be eligible for a loan discharge, such as if you were the victim of a school’s identity theft or if your school falsely certified your eligibility for a loan.
It’s important to note that loan forgiveness and discharge options are typically only available for federal student loans, not private student loans. If you have private student loans, you’ll need to contact your lender to inquire about forgiveness or discharge options.