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Home » Loan Cancellation » Federal Cancellation » School Related
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School Related

School-related cancellations offer very broad relief, but are available only in limited circumstances.

Many of the problems and abuses that lead to potential cancellations have occurred in the predatory for-profit school industry. As summarized by the Project on Predatory Student Lending at the Legal Services Center of Harvard Law School, “for decades, the predatory for-profit college industry has exploited the promise of higher education, perpetrating a massive fraud on students who are trying to build a better life.” The industry specifically targets low-income students, students of color, single parents and veterans. Many are the first in their family to attend college.

Do you have a private loan?

Read about repayment, cancellation, and settlement of private loans.

The first three cancellation categories listed below require you to meet specific eligibility standards.  To get loan relief based on the fourth category, borrower defense to repayment, you will have to show that the school misled you or engaged in other misconduct in violation of certain laws. Depending on where you live, you might also be able to apply for relief from state student tuition recovery funds.

The four main categories of federal school-related cancellations are:

1.  Closed School:  This cancellation is available if you attended a school that closed while you were a student there or if you withdrew shortly before the school closed.

2.  False Certification: There are four categories of false certification cancellations:  Ability to Benefit; Disqualifying Status; Forgery; and Identity Theft.

3.  Unpaid Refund:   You do not always have to pay the full amount if you left school early.

4. Borrower Defenses: You may be able to get a full or partial cancellation based on claims you can raise about specific problems with the school.

School Related

  • Borrower Defenses
  • Closed School
  • False Certification
  • Unpaid Refund

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  • Is it possible to cancel (also known as discharge) a federal student loan?
  • Does it matter what type of loan I have?
  • How do I apply for a loan discharge?
  • Can I discharge my student loans if I am dissatisfied with the school I attended?
  • Is there a discharge for military service?
  • Will collection stop while I’m waiting for a reply to a discharge application?
  • Is evidence of a Social Security or Veteran Affairs disability decision sufficient to qualify for a student loan disability discharge?
  • Am I eligible for job-related loan forgiveness programs?
  • Can I cancel my loan if I’m working in a public service job?
  • Can I get my federal loans canceled if I pay for a certain period of time, but am not working in a public service job?

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Please understand that we do not provide legal advice about individual cases. This web site includes links to other resources for those who seek individualized legal advice or other help not offered here. This site is for people who already have student loans and want to know more about their options and rights.
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