Need more information? Below is a super abbreviated discussion of the statutory loan discharges mentioned above. Want to see if I can help get your loans discharged? Call me at (904) 419-9858.


Borrower Defense to Repayment Discharge


You may be eligible for a borrower defense to repayment discharge of your Federal Direct Loans if your school misrepresented its services to you, engaged in fraud, or violated state law. Existing law allows students to discharge their Federal Direct Loans if they can show an act or omission of the school that would give rise to a cause of action against the school under applicable state law.

However, there are new rules that go into effect on July 1, 2017, with respect to the filing of the Defense to Repayment. The new rules clarify the application process and also change what you have to prove. With the new regulations instead of claiming a cause of action under state law, you will be attempting to prove a substantial misrepresentation, a breach of contract, or a favorable, non-default contested judgment against the school, under a new federal standard. The new federal standard will apply to loans made after July 1, 2017. However, the new procedures by which the government accepts and processes claims will apply to all applications filed after July 1, 2017.

Total and Permanent Disability Discharge


A Total and Permanent Disability discharge allows students to discharge their Federal Direct Loans, Federal Family Education Loans, and Perkins loans on the basis of total and permanent disability. You can prove that you are totally and permanently disabled using one of three different types of documentation:


  1. documentation from the U.S. Department of Veterans Affairs (VA) showing that the VA has determined that you are unemployable due to a service-connected disability
  2. A Social Security Administration (SSA) notice of award for SSDI or SSI benefits stating that your next scheduled disability review will be within five to seven years from the date of your most recent SSA disability determination
  3. Certification from a physician that you are totally and permanently disabled and that your physical or mental impairment: can be expected to result in death, or has lasted for a continuous period of not less than 60 months, or can be expected to last for a continuous period of not less than 60 months.


False Certification of Student Eligibility or Unauthorized Payment Discharge


A False Certification Discharged allows you to discharge your Direct Federal Loans or Federal Family Education Loans if you can prove one of the following:


  1. You were a non-high school graduate and the school falsified your ability to benefit from the course of study.
  2. Your school falsely certified your eligibility to benefit even though it is not possible for you to meet minimum state employment requirements for the job for which you are being trained.
  3. Your school forged or altered your student loan note.
  4. You were the victim of identity theft and, as a result, your loan was falsely certified.


Closed School Discharge


A closed school discharge allows you to discharge your Direct Loans, Family Education Loans, and Perkins loans if your school closes while you are enrolled and you do not complete your degree as a result; or if your school closes within 120 days after you withdraw. You are not eligible for a closed school discharge if you are completing your degree through a teach-out agreement with the school or if you are completing your degree
by transferring earned academic credits to another school. You are also ineligible if you have completed all your coursework at the time the school closes.



Some students and former students qualify for loan cancellation or discharge

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Student Loan Discharge


Some of you who are reading this likely have questions about loan cancellation or discharge. If you have reason to believe that you may be entitled to discharge or cancellation you certainly should investigate further as there are several circumstances in which students are entitled to a complete or partial discharge of their federal student loans.

As an example there is a:


  • Borrower Defense to Repayment Discharge
  • Total and Permanent Disability Discharge
  • False Certification of Student Eligibility or Unauthorized Payment Discharge
  • And a Closed School Discharge among others.


You have likely heard in the news about the Defense to Repayment discharge as the Department of Education recently announced new regulations with respect to this type of loan cancellation. Applying for some types of cancellation, like the Closed School Discharge is straightforward, while applying for some of the other types of discharges can be complicated. With the exception of the Closed School Discharge, if you believe you are entitled to loan cancellation I would strongly recommend at least talking with a student loan attorney.​​ But be careful who you talk to. There are a lot of companies that make money off of misleading distressed borrowers.