Do You Qualify for a Student Loan Discharge?

Obtaining a student loan discharge is not easy, but it is possible in certain situations. There are five different qualifications to have your student loans erased.

1. Death or Disability

If you become disabled to the point where you can no longer work, you qualify for a discharge on your student loan. If you die, your dependents are not expected to pay off your loan.

2. School Shuts Down

If the college you're attending goes out of business before you complete your degree, you can have your loans discharged. It's not your fault the institution couldn't keep its doors open, so you're not expected to pay the loans back in this situation.

3. Fraud

If your university forged your signature on a promissory note (and you can prove it), or if the university owes your lender a refund, your student loan could be discharged. This applies only to Stafford and Federal Family Education loans.

4. Bankruptcy

Judges have a tendency to side with the student loan lenders on this one, but it's sometimes possible to have your loans discharged in a bankruptcy proceeding. You'll have to prove that it's an extreme hardship to repay the loan.

5. Public School Teachers

If you're a public school teacher in a low-income school, you might qualify for a student loan discharge.


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