The following charts provide an overview of the provisions and links to discharge applications.
Direct Loan and FFEL Program Loan Forgiveness, Cancellation, and Discharge Summary Chart
Federal Perkins Loan Cancellation and Discharge Summary Chart
To apply for loan forgiveness, cancellation, or discharge, contact your loan servicer.
Direct Loan and FFEL Program Loan Forgiveness, Cancellation, and Discharge Summary Chart
Discharge Condition |
Amount Discharged |
Notes |
---|---|---|
Borrower's total and permanent disability or death |
100 percent |
If you are a parent PLUS loan borrower, then the loan may be discharged if you die, or if the student on whose behalf you obtained the loan dies. |
Bankruptcy (in rare cases) |
100 percent |
Cancellation is possible only if the bankruptcy court rules that repayment poses an undue hardship to the borrower. |
Closed school (for borrowers who could not complete their program because the school closed while they were enrolled or borrowers who withdrew not more than 90 days before the school closed) |
100 percent |
For loans received on or after Jan. 1, 1986. |
False loan certification (school falsely certified a borrower's eligibility to receive a loan)
|
100 percent |
For loans received on or after Jan. 1, 1986. |
False certification by reason of identity theft (loan was made as a result of the crime of identity theft, as determined by a court) |
100 percent |
Effective July 1, 2006. |
School does not make required return of loan funds to the lender |
Up to the amount that the school was required to return. |
For loans received on or after Jan. 1, 1986. |
Full-time teacher for five consecutive years in a designated elementary or secondary school or educational service agency serving students from low-income families. Must meet additional eligibility requirements. |
Up to $5,000 (up to $17,500 for elementary/secondary special education teachers and secondary math and science teachers) of the total loan amount outstanding after completion of the fifth year of teaching.
|
|
Loan forgiveness for public service employees (Direct Loan Program only) |
100 percent of the remaining outstanding balance on an eligible Direct Loan. |
For a borrower who is not in default and who makes 120 monthly payments on the loan after Oct. 1, 2007, under certain repayment plans, while the borrower is employed full-time in a public service job. You may not apply for forgiveness until after you have made all of the required 120 qualifying monthly payments. |
Loan Discharge Applications
The following is a list of loan discharge applications. If you have a Direct Loan or FFEL Program loan and you’re ready to apply for forgiveness, cancellation, or discharge, you must contact your loan servicer.
- Total and Permanent Disability
- School Closure
- False Certification of Ability to Benefit
- Unauthorized Signature/Unauthorized Payment
- False Certification (Identity Theft)
- False Certification (Disqualifying Status)
- Unpaid Refund
- Teacher Loan Forgiveness
Federal Perkins Loan Cancellation and Discharge Summary Chart
This chart includes a list of cancellation provisions for Federal Perkins Loans. If you have a Federal Perkins Loan, you must apply to the school that made the loan or to the loan servicer the school has designated. If you have any questions on Perkins Loan cancellation, contact the school or loan servicer.
Cancellation Conditions |
Amount Forgiven |
---|---|
Borrower's total and permanent disability or death |
100 percent |
Bankruptcy (in rare cases—cancellation is possible only if the bankruptcy court rules that repayment would cause undue hardship) |
100 percent |
Closed school (before student could complete program of study); applies to loans received on or after Jan. 1, 1986 |
100 percent |
Service in the U.S. armed forces in a hostile fire or imminent danger pay area |
Up to 50 percent for borrowers whose active duty service ended before Aug. 14, 2008 Up to 100 percent for borrowers whose active duty service includes or began on or after Aug. 14, 2008 |
Full-time firefighter (for service that includes August 14, 2008 or began on or after that date) |
Up to 100 percent |
Full-time law enforcement or corrections officer |
Up to 100 percent |
Full-time nurse or medical technician |
Up to 100 percent |
VISTA or Peace Corps volunteer |
Up to 70 percent |
Librarian with a master's degree working in a Title I-eligible elementary or secondary school or in a public library serving Title I-eligible schools (for service that includes August 14, 2008, or began on or after that date) |
Up to 100 percent |
Full-time attorney employed in a federal public or community defender organization (for service that includes August 14, 2008, or began on or after that date) |
Up to 100 percent |
Full-time employee of a public or nonprofit child- or family-services agency providing services to high-risk children and their families from low-income communities |
Up to 100 percent |
Full-time staff member in the education component of a Head Start program |
Up to 100 percent |
Full-time staff member in a prekindergarten or child care program that is licensed or regulated by a state (for service that includes August 14, 2008, or began on or after that date) |
Up to 100 percent |
Full-time qualified professional provider of early intervention services for the disabled |
Up to 100 percent |
Full-time speech pathologist with a master's degree working in a Title I-eligible elementary or secondary school (for service that includes August 14, 2008, or began on or after that date) |
Up to 100 percent |
Full-time special education teacher of children with disabilities in a public or other nonprofit elementary or secondary school |
Up to 100 percent |
Full-time teacher of math, science, foreign languages, bilingual education, or other fields designated as teacher shortage areas |
Up to 100 percent |
Full-time special education teacher of children with disabilities in an educational service agency (for service that includes August 14, 2008, or began on or after that date) |
Up to 100 percent |
Full-time teacher in a designated educational service agency serving students from low-income families (for teaching service that includes August 14, 2008, or began on or after that date) |
Up to 100 percent |
Full-time faculty member at a tribal college or university (for service that includes August 14, 2008, or began on or after that date) |
Up to 100 percent |
Note: As of Oct. 7, 1998, all Perkins Loan borrowers are eligible for all cancellation benefits regardless of when the loan was made or the terms of the borrower's promissory note. However, this benefit is not retroactive to services performed before Oct. 7, 1998.