Discharge (cancellation)

The release of loan borrowers and/or grant recipients from their obligations to repay their Direct Loans or fulfill their TEACH Grant service obligation. Loan borrowers and grant recipients must meet certain requirements to be eligible for discharge. Direct Loans might be discharged if the borrower dies, or becomes totally and permanently disabled, or in certain cases if the borrower files for bankruptcy, or the school either closes or falsely certified a student's loan. TEACH Grants can be discharged due to death or total and permanent disability.