(canceled) or reduced, but only under certain specific
circumstances:
You die or become totally and permanently disabled.
Your school closed before you could complete your
program.
For FFEL and Direct Stafford Loans only: Your school owes
your lender a refund, forged your signature on a
promissory note, or certified your loan even though you
didn't have the ability to benefit from the coursework.
You work in certain designated public school service
professions (including teaching in a low-income school).
You file for bankruptcy. (This cancellation is rare and
occurs only if a bankruptcy court rules that repayment
would cause undue hardship.)
Discharge provisions differ depending on whether you
have a Federal Perkins Loan or a FFEL/Direct Stafford Loan
APPLYING FOR A DISCHARGE
If you qualify for a loan discharge, you must apply for one:
Federal Perkins Loan borrowers must apply to the school
that made the loan or to the loan servicer the school has
designated.
Direct Stafford and PLUS Loan borrowers must contact the
Direct Loan Servicing Center. You can also call the
Servicing Center at 1-800-848-0979.
FFEL Stafford and PLUS Loan borrowers should contact
the lender or agency holding the loan. You can also find a
number of discharge forms online.
