Definition
A program that cancels part or all of your student loan debt under specific conditions, such as permanent disability.
What to consider
- Ensure you meet all the specific requirements before applying.
- Keep meticulous records to support your application.
- Understand that discharged debt could have tax implications.
Real world scenarios
- Kayla’s trade school shuts down before she finishes, qualifying her for a loan discharge that erases the remaining balance.
- Due to documented fraud from a predatory college, Evan successfully applies for discharge, alleviating thousands in debt.
- Filing all required documents promptly helps Brenda expedite the discharge process, freeing her from unwarranted education loans.
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