How to Discharge Indebtness of Student Loans

Contrary to popular belief, student loans offered through the U.S. Federal Student Aid program can be canceled and discharged. However, it is not simple. In some instances, even bankruptcy will not relieve you of your obligations to federal loans. However, there are several ways to gain a full and permanent loan discharge. Before applying for a discharge, though, you must ensure you are eligible. This will save you time and frustration.

Instructions

1

Obtain a death certificate if your child died with student loans. This provision only applies to parents of students who took out a parent PLUS loan (for graduate school). A certified copy of the death certificate must be sent to the U.S. Department of Education by mail. Once recieved and verified, the loan will be discharged.

U.S. Department of Education

400 Maryland Ave. SW

Washington, D.C. 20202

2

File for bankruptcy if you are experiencing severe financial difficulties. Unfortunately, it is up to the court and the judge's discretion whether or not your student loans present an "undue hardship." If the courts approve of your "undue hardship," your student loans will be discharged with your other debts.

3

Verify your total and permanent disability. You must be able to prove, with documents from your physician and the Department of Health and Human Services, that you will no longer be able to work---for the rest of your life. You must fill in the total and permanent disability application to get your loans discharged.

4

Send your military conscription papers to the U.S. Department of Education. If you are a full-time service member, you are eligible for a full discharge of your federal loans. If you are a member of the Reserves, you can get a partial discharge. The amount that is ultimately forgiven is up to the loan counselors at the U.S. Department of Education.