Is There Any Way to Get Rid of Student Loan Debt Other Than in Bankruptcy?
Student loan debt from private lenders may be discharged in bankruptcy, but federal student loans are generally not. You can rid yourself of federal student loan debt in few circumstances. However, the U.S. Department of Education does offer programs in which individuals can cancel part or all of their federal student loan debt.
Other People Are Reading
-
Closed School Cancellation
-
You may be able to qualify for student loan cancellation if the school you were attending closes, if you have student loans in which you can prove that the school falsely certified your loan documents by forging your signature or if you have become permanently disabled since taking out your student loans. These cancellation conditions do not apply to Perkins loans and only apply to loans with an origination date on or after January 1, 1986.
Ability to Benefit Cancellation
-
The "ability to benefit" exam is for individuals who do not have their high school diploma or high school equivalency diploma. If this describes your situation and your school did not give you the exam or did not properly administer the exam, you may qualify for student loan cancellation. It is important to note that if you did take the exam, the administrator had to make egregious errors such as allowing you more time to take the test than originally allotted, allowing you a re-take the exam, giving you the answers to the test or using a test that was not approved by the U.S. Department of Education.
-
Disqualifying Status Cancellation
-
If you had personal circumstances that would prevent you from obtaining employment in your field of study when you originally enrolled in school, you may be eligible for a disqualifying status cancellation. For example, you go to school to study to be a Federal Air Marshall, which requires you to carry a firearm. If at the time you enrolled, you were not aware that you could not purchase or carry a firearm due to your previous felony conviction, you may be eligible for a disqualifying status cancellation.
Other Types of Student Loan Cancellation
-
The government discharges federal student loans if the student dies or becomes permanently disabled. A physician must certify your disability before the discharge is completed. If you work as a teacher, public service employees or are in the armed forces, you may qualify for a discharge of all or a portion of your federal student loan debt. If you work in the legal field for a non-profit or public law firm or agency, you may also qualify for a discharge of all or a portion of your student loan debt.
-
