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Student Loan Discharge Major Overview

September 10, 2011

Student Loan Discharge

student loan discharge

Student loan discharge is when your student loan debt is completely wiped away or heavily reduced. This can be done in certain situations if the strict set of guidelines. There are multiple reasons that a student loan can be discharged, which will be discussed below along with other valuable information that you should know and keep in mind if you are going to try to your student loan discharge on your debt.

Student Loan Discharge – Qualifying Reasons

There are 5 reasons that will dicharge your obligation to pay your student loans. Here are the reasons.

  1. If the college you are attending to is closed down before the completion of your training or degree.
  2. Specific public service jobs also can qualify for student loan discharge.
  3. What is called false certification discharge can discharge student loans. This is where someone commited fraud in your name, taking out a loan under your name which leaves you with the debt. Upon proof of this, you can get the loan debt wiped away. The lender of your loans must believe that information actually proves that fraud was commited on you, and not a scam to try to get out of loans.
  4. Filing bankruptcy is another way of student loan discharge but certain laws have made it a lot harder to file for bankruptcy on your student loans. The only way this is done is through a court trial in which they state that paying student loans would be the cause of what they call a “undue hardship”. This is where a person with loan payments would drop below the minimal standards of living if they in fact have to continue the payments on the loan.
  5. Passing away or permanent disablity.

Applying For Student Loan Discharge

Apply for student loan discharge is to be done through different methods, depending on your loan holder and loan you have. The best thing to do if you intend on applying for student loan discharge would be to contact the holder of your loan and they will give you more information on the process as well other encompassing information involving the process.

Other Student Loan Discharge Information

  1. If you apply for student loan discharge and are waiting on a pending decision, you need to continue paying monthly payments on your loan debt until it is decided whether or not your are eligible for your student debt discharge.
  2. Your student loan holder makes the final decision whether or not your qualify for student loan discharge, and and appeal cannot be made to the Department of Education unless you were a victim of fraud.
  3. You cannot apply for discharge if you are unhappy with your schooling experience. This includes believing that  your schooling not having teachers that are qualified or unqualified equiptment, did not provide you with placement in the workforce that they originally promised or they were found guilty with charges of fraud.
  4. You cannot get your student loans discharged if you were an atendee of a non eligible study program that you took at your school.
  5. Financial difficulty doesn’t necessarily qualify for student loan discharge unless the difficulty is worthy enough on the bankruptcy on your student loan debt.