How to Cancel Student Loans

You may qualify for the cancellation of student loans.

If you fail to make payments on time for a student loan, the loan agency will usually assess penalties to your account and attempt to collect the missing payments from your paycheck or tax refund. You may be able to avoid this situation if you qualify for student loan cancellation. When a student loan is cancelled, the borrower no longer has to pay back the remaining principal or interest.

Instructions

1. Make sure you qualify for cancellation of student loans. You can go to the Student Loan Borrower Assistance website for more information on the conditions for loan cancellation. These conditions include total disability, military service and bankruptcy.

2. Contact the Federal Student Aid Office at 800-621-3115 to begin your cancellation request and confirm that you meet one or more conditions for canceling your student loan.

3. Go to the Federal Student Aid website and click on the link for the condition of cancellation that you qualify for.

4. Fill out the appropriate loan discharge application form.

5. Send the completed loan discharge application form to the holder of your loan and then wait to receive a decision on your cancellation request.

References

• Nolo: Student Loans: Cancellation, Deferment, and Forbearance

Resources

• Student Loan Borrower Assistance: Loan Cancellation
• Federal Student Aid: Loan Cancellation & Discharge