Forgiveness and Discharge
Public Service Loan ForgivenessBorrowers with Direct federal student loans who work for government and not-for-profit employers are encouraged to learn more about the Public Service Loan Forgiveness (PSLF) program. PSLF forgives outstanding loans after 10 years in repayment on accepted repayment plans while working full-time for a qualifying employer. Borrowers can check their eligibility and apply online at StudentAid.gov.
Total and Permanent Disability Discharge (TPD)
Borrowers with Direct federal student loans, Federal Family Education (FFEL) program loans, Federal Perkins Loans, or who received a Teacher Education Assistance for College and Higher Education (TEACH) grant and have become totally and permanently disabled may qualify to have their loans or grants discharged. Learn more and apply online at StudentAid.gov.
Income-Driven Repayment Plans
Depending on the type of income-driven repayment plan, forgiveness would occur after 20 or 25 years spent in repayment. Under the new RAP plan, forgiveness occurs after 30 years in repayment on RAP. Learn more about income driven repayment plans at StudentAid.gov.
Closed School Discharge
Borrowers may be eligible for a discharge of their federal student loans if they did not graduate and their school closed while they were enrolled or on an approved leave of absence, or if their school closed soon after they withdrew. There are certain circumstances that disqualify individuals from this type of discharge. Learn more and apply online at StudentAid.gov.
Borrower Defense to Repayment
Borrowers may be eligible to have their federal student loans discharged if their school lied to them or misled them about something that was central to their decision to enroll. For example, if a school made a misleading promise that borrowers would be able to transfer their credits to another school or were guaranteed to get jobs in their fields of study after graduation, those borrowers may have a borrower defense to repayment. Borrowers must have been harmed by their school’s conduct. When submitting an application, borrowers should be as detailed as possible. See this application guide for assistance in filling out an application. There are other grounds to qualify for a borrower defense to repayment as well. Learn more and apply online at StudentAid.gov.
False Certification Discharge
Borrowers may be eligible for this type of federal student loan discharge if they were not eligible to receive their loan, but their school certified their loan anyway. When this happens under certain circumstances, borrowers may qualify for a false certification discharge. For example, if a school employee signed a borrower’s name on a loan application without their permission, this type of loan discharge may be available. Learn more and apply online at StudentAid.gov.