Administrative discharge relieves federal student loan borrowers from payment of qualifying federal student loans upon a showing that the borrower meets certain requirements.
The most common example of a federal student loan discharge is the total and permanent disability (TPD) discharge. Under TPD, certain federal student loan borrowers may be relieved from payment of qualifying federal student loans upon a showing that the borrower meets certain requirements for being considered totally and permanently disabled.
Other federal student loan administrative discharges include
Death Based Discharge – 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.
Closed School Discharge – Federal student loans may be discharged if the school the borrower attended closes while the borrower is enrolled or soon after withdrawing.
False Certification Discharge – Federal student loans may be discharged if the borrowerâ€™s school falsely certified the studentâ€™s eligibility to receive a loan.
Unpaid Refund Administrative Discharge – If the borrower withdrew from school and the school didnâ€™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.
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Except for death based discharge, administrative discharges are not automatic, the borrower must apply and be approved for the discharge.
Federal student loan administrative discharge is a complicated and confusing web of laws. We are licensed and experienced lawyers who understand the law, how it applies to you and how to navigate towards the best possible resolution for you.
Start today getting your federal student loans in order by contacting us to schedule your student 30-minute federal student loan resolution session.