Discharging Your Loan

The Obvious:

· If the student dies (death certificate required).

· If the student becomes permanently disabled.


In the case of a loan discharge, the student involved must be permanently and completely disabled. This is also defined as being not able to work and earn an income due to an illness/injury that will most likely end in death.

It will pay you to check the laws in your state as these rules are continually being updated.

In some cases, only a conditional cancellation may be issued, this may last up to three years from when the student became disabled.

Another thing to consider is that if the conditions of the loan are not met, then the loan will revert back to its original state.

In either case, a doctor’s certification will also be required that will state the nature and details of the students illness/injury.


It may be possible to receive a discharge if the educational institution actually closes.


It may be possible to also obtain a discharge if the loan was approved in spite of the fact that the student did not meet the requirements of the loan conditions.

Also, f the school does not meet the necessary requirements to provide adequate training or lessons to meet the student’s educational requirements.

Discharges can also be given for teachers working in low income educational facilities or who work in public schools.

Doctors working in low income areas may also be able to receive a discharge.

Another situation would be if the Student becomes bankrupt, then they may be eligible for a discharge, this would be dependent on a court ruling that would state that the student will be subjected to unfair hardship.