Student Debt Discharge

Student Loan Forgiveness

Debt Discharge Options

Death Discharge

If you, the borrower, die, then your federal student loans will be discharged.  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.

The loan will be discharged if a family member or other representative provides a certified copy of the death certificate to the school (for a Federal Perkins Loan) or to the loan servicer (for a Direct Loan or FFEL Program loan). For more information, contact 844-236-3332.

Student Loan Discharge in Bankruptcy

This is not an automatic process—you must prove to the bankruptcy court that repaying your student loan would cause undue hardship.

If you file Chapter 7 or Chapter 13 bankruptcy, you may have your loan discharged in bankruptcy only if the bankruptcy court finds that repayment would impose undue hardship on you and your dependents. This must be decided in an adversary proceeding in bankruptcy court. Your creditors may be present to challenge the request. The court uses this three-part test to determine hardship:

  • If you are forced to repay the loan, you would not be able to maintain a minimal standard of living.
  • There is evidence that this hardship will continue for a significant portion of the loan repayment period.
  • You made good-faith efforts to repay the loan before filing bankruptcy (usually this means you have been in repayment for a minimum of five years).

Your loan will not be discharged if you are unable to satisfy any one of the three requirements. If your loan is discharged, you will not have to repay any portion of your loan, and all collection activity will stop. You also will regain eligibility for federal student aid if you had previously lost it.

FAST AND EASY

15 – Minute

Federal Loan Forgiveness Evaluation

Closed School Student Loan Discharge

You may be eligible for discharge of your Direct Loans and FFEL Program loans under either of these circumstances:

  • Your school closes while you’re enrolled, and you do not complete your program because of the closure. Any federal student loan obtained to pay your cost of attendance at that school could be discharged.  If you were on an approved leave of absence, you are considered to have been enrolled at the school.
  • Your school closes within 90 days after you withdraw.

You are not eligible for discharge of your Direct Loans or FFEL Program loans if your school closes and any of the following is true:

  • You withdraw more than 90 days before the school closes.
  • You are completing a comparable educational program at another school. If you complete such a program at another school after your loan is discharged, you might have to pay back the amount of the discharge.
  • You have completed all the coursework for the program, but you have not received a diploma or certificate.

You might need your academic records if you plan to attend another school and want to have your coursework at the closed school taken into consideration. So it will be important for you to obtain your academic and financial aid records if your school closes.

If you think you may qualify for a Student Loan Discharge, contact CLASS Financial at (844) 236-3332.

False Certification of Student Eligibility or Unauthorized Payment Dischargeapply

You may be eligible for a discharge of your Direct Loan or FFEL Program loan in these circumstances:

  • Your school falsely certified your eligibility to receive the loan based on your ability to benefit from its training, and you did not meet the ability to benefit student eligibility requirements.
  • The school signed your name on the application or promissory note without your authorization or the school endorsed your loan check or signed your authorization for electronic funds transfer without your knowledge, unless the proceeds of the loan were delivered to you or applied to charges owed by you to the school.
  • Your loan was falsely certified because you were a victim of identity theft.
  • The school certified your eligibility, but because of a physical or mental condition, age, criminal record, or other reason you are disqualified from employment in the occupation in which you were being trained.

Unpaid Refund Student Loan Discharge

You may be eligible for a discharge of your Direct Loan or FFEL Program loan if you withdrew from school, but the school didn’t pay a refund that it owed to the U.S. Department of Education or to the lender, as appropriate. Check with the school to see how refund policies apply to federal aid at the school.

Only the amount of the unpaid refund will be discharged. You may qualify for this partial discharge whether the school is closed or open. Call (844) 236-3332 to see if you qualify.

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CLASS Financial is a Full Service Consulting and Document Preparation Company offering services to anyone who may need our guidance & support before, during and after the student loan consolidation & repayment process. Call 1-844-236-3332 to get your free consultation today. We work on a case by case basis and are not affiliated with the Department of Education. Our document preparation fee schedule is based on a sliding scale and is determined at the time of your consultation. The tedious application process, vast program options and time consuming document preparation has left many Americans struggling to determine which direction to go. There are many benefits in choosing a 3rd party to represent you and help navigate the benefits associated with the variety of forgiveness programs available today. We will help you find out what options you qualify for and walk you through the consolidation application process. We have services in all 50 states, and there is no up-front fee or obligation to pay for the services if you decide not to use them. You can file these papers yourself at no cost, but for a small fee our experts can assist you in choosing the best programs to apply for, to ensure you get the maximum debt reduction, avoid credit report hits or collections, or any other issues that may arise in the consolidation process. We take your privacy seriously. By clicking the button above, you agree to share your information with  Premier Partners and for them to contact you (including through automated means; e.g. autodialing, text and pre-recorded messaging) via telephone, mobile device (including SMS and MMS) and/or email, even if your telephone number is currently listed on any state, federal or corporate Do Not Call list. By submitting this form, I agree to be contacted in regard to this form submit through automated means; including: autodialing, text and pre-recorded messaging via telephone and mobile devices (including SMS and MMS)*.These programs are sponsored by the US Department of Education. By submitting our form, you are not submitting for a government eligibility check. Fill in the form below and an agent will contact you regarding your consolidation status, and help you through the application process. We are not a do not claim to be affiliated with the following: any local, state or federal government agencies: Department of Education: or any student loan services, lenders or providers. We are an independent preparer of documents and forms working to assist clients with paperwork needed to complete the student loan consolidation and forgiveness process. Our services provide the preparation and completion of various student loan related forms and processes. We do not provide Legal of Financial advice. If you need Legal or Financial advice, please contact a lawyer or other professional to guide you. Please also know that you can complete these processes on your own through the Department of Education and its various entities for free. We work within the same standards and guidelines that would also be available to you. We are hired to assist our clients because of the tedious and confusing process that we have simplified due to our expertise and knowledge.  Frees paid to us are for document preparation services only and are not paid directly to your lender. We do not provide debt negotiation, settlement, management, or consolidation services. We do not guarantee results as they differ from client to client. All other trademarks used on this site are the property of their respective owners.

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