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Forgiveness, cancellation, and discharge of your loan means that you are no longer expected to repay your loan.
You must repay your loans even if you don’t complete your education, can’t find a job related to your program of study, or are unhappy with the education you paid for with your loan. However, certain circumstances might lead to your loans being forgiven, canceled, or discharged. The list below is a quick view of the types of forgiveness, cancellation, and discharge.
| Type of Forgiveness Cancellation or Discharge | Direct Loans | FFEL Loans | Perkins Loans |
|---|---|---|---|
| Total and Permanent Disability Discharge |  |
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| Death Discharge | |
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| Discharge in Bankruptcy (In rare cases) | |
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| Closed School Discharge | |
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| False Certification of Student Eligibility or Unauthorized Payment Discharge | |
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| Unpaid Refund Discharge | |
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| Teacher Loan Forgiveness | |
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| Public Service Loan Forgiveness | |
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| Perkins Loan Cencellation and Discharge | |
Looking for information about the Civil Legal Assistance Attorney Student Loan Repayment Program (CLAARP)? The CLAARP application process is closed.
To view charts of discharges by loan type as well as discharge applications, please click here
Total and Permanent Disability (TPD) Discharge
You may be eligible for a TPD Discharge on your federal student loans if you are unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that:
- Can be expected to result in death
- Has lasted for a continuous period of not less than 60 months
- Can be expected to last for a continuous period of not less than 60 months; or
- Has been determined by the Secretary of Veterans Affairs to make you unemployable due to a service-connected disability. To apply for this discharge, you must have a physician certify the discharge application. For more information, go to Total and Permanent Disability Discharge.
- A federal, state, local, or tribal government organization, agency, or entity(includes most public schools, colleges and universities) are eligible for a loan forgiveness student loan consolidation.
- A public or family service agents are eligible for a loan forgiveness student loan consolidation.
- A non-profit organization under section 501(C)(3) of the Internal revenue Code that is exempt from taxation under 501(a) of the Internal Revenue Code (includes most non-profit private schools, colleges, and universities); A Tribal college or university; or an organization that is not a for-profit business, a labor union, a partisan political organization, or an organization engaged in religious activities are eligible for a loan forgiveness student loan consolidation.
- Emergency Management employees are eligible for a loan forgiveness student loan consolidation.
- Military employees are eligible for a loan forgiveness student loan consolidation.
- Law Enforcement employees are eligible for a loan forgiveness student loan consolidation.
- Public interest law services are eligible for a loan forgiveness student loan consolidation.
- Early Childhood Education (including licensed or regulated health care, Head Start, and state-funded pre-kindergarten) are eligible for a loan forgiveness student loan consolidation.
- Public Service workers for individuals with disabilities and the elderly are eligible for a loan forgiveness student loan consolidation.
- Public health workers(including nurses, nurse practitioners, nurses in a clinical setting, and full-time professionals engaged in health care practitioner occupations and health care support occupations) are eligible for a loan forgiveness student loan consolidation.
- Public Education workers are eligible for a loan forgiveness student loan consolidation.
- Public library services; and School library or other school are eligible for a loan forgiveness student loan consolidation.
Through the College Cost Reduction and Access Act of 2007, Congress created the Public Service Loan Forgiveness Program to encourage individuals to enter and continue to work full-time in public service jobs. Under this student loan program, borrowers may qualify for forgiveness of the remaining balance due on their eligible federal student loans after they have made 120 payments on those loans under certain repayment plans while employed full time under a certain public service employers. With the Student Loan Forgiveness Program, borrowers must make 120 monthly payments on their eligible federal student loans beginning after October 1, 2007 before they qualify for the loan forgiveness, the first cancellations of loans balances will not be granted until October 2017. Apply now to find out if you are eligible for a student loan forgiveness program.
- National Direct Student Loans (NDSL)
- National Defense Student Loans (NDSL)
- Federal Supplemental Loans for Students (SLS)
- Parent Loans for Undergraduate Students (PLUS)
- Auxiliary Loans to Assist Students (ALAS)
- Health Professions Student Loans (HPSL)
- Health Education Assistance Loans (HEAL)
- Nursing Student Loans (NSL)
- Loans for Disadvantage Students (LDS)
- Unsubsidized and Non-subsidized Federal Stafford Loans
- Direct Unsubsidized Loans, including Direct Unsubsidized Loans (TEACH)(converted from TEACH Grants)
- Unsubsidized Federal Consolidation Loans
- Direct Unsubsidized Consolidation Loans
- Federal PLUS Loans (for parents or for graduate and professional students)
- Direct PLUS Loan (for parents or for graduate and professional students)
- Direct PLUS Consolidation Loans
- Subsidized Loans
- Subsidized Federal Stafford Loans
- Direct Subsidized Loans
- Subsidized Federal Consolidation Loans
- Direct Subsidized Consolidation Loans
- Federal Insured Student Loans (GSL)
- Guaranteed Student Loan (GSL)
6 reasons why you should consolidate your student loans:
- Are your student loan monthly payments manageable? If you have trouble meeting your monthly payments, have exhausted your deferment and forbearance options, and/or want to avoid default, a Direct Consolidation Loan may help you. Apply Now for a free pre-approval.
- If you send payments to more than one lender every month, and want the convenience of a single monthly payment, consolidation may is right for you. With a Direct Student Consolidation Loan, you will have a single lender – and a single monthly payment.
- How much are you willing to pay over the long term? Like a home mortgage or a car loan, extending the years of repayment increases the total amount you have to repay but reducing your overall monthly payments.
- How many payments do you have left on your loans? If you are close to paying off your student loans, it may not be worth the effort to consolidate or extend your payments
- Falling delinquent on your student loan payments? In this case it is important that you apply now and complete the consolidation ASAP.
- Income has been reduced? When your income reduces e-student loan offers its clients numerous of income based programs tailored to meet your needs. Apply Now for a free no obligation quote.
Borrowers can choose from multiple repayment plans with various term selections to repay their consolidation loan(s), including an Income Contingent Repayment and an Income-Based Repayment Plan. These plans are designed to be flexible to meet the different and changing needs of borrowers. With a student consolidation loan, borrowers can switch repayment plans at anytime. If you select the IBR Plan and want to change at a later date, your only option will be the Standard Plan.
With only one lender and one monthly payment due for student loans, it is now easier than ever for borrowers to manage their student loan debt. Borrowers have only one lender, the U.S. Department of Education, for all loans included in a Direct Consolidation Loan.
Student loan consolidation allows borrowers to combine one or more of their federal education loans into a new loan that offers several advantages.