A total and permanent disability (TPD) discharge relieves federal student loan borrowers from payment of qualifying federal student loans upon a showing that the borrower meets certain requirements for being considered totally and permanently disabled. Qualifying Loans Direct FFEL Perkins Parent PLUS (Based on parent’s own disabilities, not those of the student’s). Requirements To qualify for a TPD discharge, the […]

Federal student loans are discharged upon the death of the borrower.  This administrative discharge includes Parent PLUS loans where the student on whose behalf the loan was taken dies. If the parent-borrower of a Parent PLUS loan dies, the Parent PLUS loan is discharged. In the case of joint consolidation loans (where spouses consolidate their qualifying federal student loans together […]

Federal student loans may be discharged if the school the borrower attended closes while the borrower is enrolled or soon after withdrawing.  Closed school discharges are not automatic, the borrower must apply and be approved for the discharge.  To qualify, the borrower must meet certain requirements: What Loans Qualify? William D. Ford Federal Direct Loans; Parent PLUS Loans; Federal Family […]

Federal student loans may be discharged if the borrower’s school falsely certified the student’s eligibility to receive a loan. False certification based discharges are not automatic, the borrower must apply and be approved for the discharge.  To qualify, the borrower must meet certain requirements: What Loans Qualify? William D. Ford Federal Direct Loans; Parent PLUS Loans; Federal Family Education Loans […]

If the borrower withdrew from school and the school didn’t make a required return of loan funds to the loan servicer, the borrower might be eligible for a discharge of that federal student loan. With certain federal student loans, the school may be required under federal regulations to return some or all of the loan money to the loan servicer […]