Apply for a discharge

What’s a discharge?

A discharge is a permanent release from the obligation to repay the loan. It is also referred to as a cancellation. It’s possible to have a student loan discharged under certain circumstances as long as you’re not in default. You cannot discharge your loan if you:

• Do not complete your academic program
• Are not satisfied with the education you received
• Do not obtain employment after graduating

Discharges are granted for adverse conditions such as the total and permanent disability of a borrower or a borrower’s death. Total and permanent disability is the inability to work and earn money because of an illness or injury that’s expected to continue indefinitely or result in death. When you apply for discharge on this basis, you’ll need a physician’s certification. Your loan will be conditionally discharged for up to three years, and you’ll need to meet further requirements for a final discharge after the three-year period.

If you are a teacher, it may be possible for you to cancel or defer your student loans. For example, if you have a loan from the Federal Perkins Loan Program, you might be eligible for loan cancellation for full-time teaching at a low-income school, or teaching in certain subject areas.

How do I find out if I can get a discharge?

Discharges or cancellations are loan specific. Click here for information on Federal Direct, Federal Stafford, and Federal Perkins loan cancellation provisions. For information on the cancellation provisions for MIT Technology Loans, see the SFS loan exit counseling guide. For your other student loans, check directly with the loan holder or servicer.

After reviewing the cancellation conditions, if you think you qualify, you must apply to the holder of your loan or its designated servicer.

Important things to remember

• Discharges are cancellations.
• Discharges and cancellations are loan specific.
• You must apply for a discharge from your loan holder(s) or their designated servicers.
• The discharge for total and permanent disability includes a conditional discharge period of three years prior to qualifying for a final discharge.