Student Loan And Other Discharge Options

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.

Death Discharge

If you die, your student loans may be discharged. Your loan servicer will require documentation, such as a death certificate, to process the discharge.

Bankruptcy 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.

There are several options for discharging a loan, which is the process of releasing the borrower from their obligation to repay the loan. The specific options available to you will depend on the type of loan you have and your individual circumstances. Here are some common loan discharge options:

Loan Forgiveness

This occurs when the lender agrees to cancel the borrower’s obligation to repay the loan. This is often available for student loans through programs such as Public Service Loan Forgiveness or Teacher Loan Forgiveness.

Loan Discharge

This occurs when the borrower is released from their obligation to repay the loan due to certain circumstances, such as the borrower’s death or permanent disability.

Loan Refinance

This involves taking out a new loan to pay off the existing loan. This can be a good option if the borrower can qualify for a lower interest rate or more favourable loan terms.

Loan Consolidation

This involves combining multiple loans into a single loan with a single monthly payment. This can be a good option for borrowers who have multiple loans with different interest rates and terms.


In some cases, a borrower may be able to discharge their debts, including their loans, through bankruptcy. However, this is generally considered a last resort and can have long-term consequences on the borrower’s credit.

Note:It’s important to carefully consider all of your options before deciding on a course of action. It may be helpful to speak with a financial advisor or a loan counselor to explore your options and determine the best course of action for your specific situation.

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