How to Get a Delinquent Student Loan Discharged
If you are seriously past due on a student loan with no hope of being able to catch up in the near future, you're likely sitting hopelessly on the sidelines while your delinquent status ruins your credit report and, along with it, your shot at decent loan rates (or even getting a loan at all). While getting a student loan discharged, delinquent or not, is very hard to do, it's not impossible; there are a few steps you can take to try and get your delinquent student loan discharged.
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Instructions
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Know your rights. If you feel like you have been taken advantage of in regards to the student loan, you may be able to walk away from the loan. For example, if a) school officials knowingly admitted you into a program that you were not qualified to complete, b) school staff forged your name on the loan documentation, or c) the loan was obtained by someone who had stolen your identity, you may qualify for a False Certification discharge on a federal student loan (see Resources).
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Keep a close eye on your alma mater. If a school closes either while you're attending classes or within 90 days of your graduation/last class, you can request a Closed School discharge (see Resources) on federal student loans received on or after January 1, 1986. A quick Internet search can help you determine if and when your school closed (see Resources).
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Determine whether disability is to blame for your inability to pay. If you become disabled and are deemed permanently unable to work, you can turn in a Discharge Application: Total and Permanent Disability form (see Resources). You will need a physician's certification that you are permanently disabled and must also meet other requirements during a three-year trial discharge period before your loan will be permanently discharged (with an exception for veterans who are disabled in the line of duty and are able to provide documentation stating that fact from the U.S. Department of Veteran Affairs).
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Work off your student loan. If you are a teacher, you can earn up to $17,500 in loan forgiveness if you work for at least five years in a low-income school and are able to bring your loan current by the date of your loan cancellation request (see References). Likewise, if you provide at least one year of military service in what is deemed a hostile area, you can apply for partial cancellation of your student loan. If this applies to you, please send a copy of your military discharge form (DD214) to the agency that supplied your loan.
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References
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