Certain situations may qualify your student loans for forgiveness, cancellation, or discharge consideration.
For example, some unique situations which may qualify student loans for forgiveness are: loan forgiveness for employment in a public service job, and loan forgiveness or cancellation for teachers.
The following table is an overview of specific situations where a student loan may qualify for forgiveness, cancellation, or discharge:
Student Loan Forgiveness, Cancellation, and Discharge Options | Direct Loans | Federal Family Education Loan (FFEL) Program Loans | Perkins Loans |
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Closed School Discharge | X | X | X |
Public Service Loan Forgiveness | X | ||
Teacher Loan Forgiveness | X | X | |
Perkins Loan Cancellation and Discharge (inclusive of Teacher Cancellation) | X | ||
Total and Permanent Disability Discharge | X | X | X |
Discharge Due to Death | X | X | X |
Discharge in Bankruptcy (in very specific situations) | X | X | X |
False Certification of Student Eligibility or Unauthorized Payment Discharge | X | X | |
Unpaid Refund Discharge | X | X | |
Borrower Defense Discharge | X | X* |
*A Student Loan borrower may assert a Borrower Defense Discharge claim (regarding an FFEL Program loan) against a holder of the student loan, only in specific situations detailed in 34 CFR 682.209(g).
Direct Loan and FFEL Program Repayment Plan Options | |||
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Repayment Plan | Eligible Loans | Monthly Payment and Time Frame | Eligibility and Other Information |
Standard Repayment Plan |
| Payments are a fixed amount. Up to 10 years (up to 30 years for Consolidation Loans). | All borrowers are eligible for this plan. You’ll pay less over time than under other plans. |
Graduated Repayment Plan |
| Payments are lower at first and then increase, usually every two years. Up to 10 years (up to 30 years for Consolidation Loans). | All borrowers are eligible for this plan. You’ll pay more over time than under the 10-year Standard Plan. |
Extended Repayment Plan |
| Payments may be fixed or graduated. Up to 25 years. |
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Revised Pay As You Earn Repayment Plan (REPAYE) |
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Pay As You Earn Repayment Plan (PAYE) |
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Income-Based Repayment Plan (IBR) |
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Income-Contingent Repayment Plan (ICR) |
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Income-Sensitive Repayment Plan |
| Your monthly payment is based on annual income. Up to 15 years. |
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