How to get my student loan discharged or forgiven

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Getting a student loan discharged or forgiven may seem impossible, but by following these steps, it is possible to have a student loan discharged or forgiven. In many instances it is a matter of filing for bankruptcy, and it will involve a lawyer and a court decision.

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    In a typical bankruptcy settlement, student loans are unlikely to be forgiven. Usually, some special circumstance that would prevent repayment of the loans would be necessary.

  2. 2

    Using a competent bankruptcy lawyer, it may be possible to have your student loan debt partially or fully discharged at the discretion of the judge who presides over your bankruptcy hearing. This is best accomplished by proving to the court that repayment of the loans is unlikely or impossible.

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    If you are currently disabled and have filed or are filing for permanent disability, it may be possible to have your student loans forgiven as part of a bankruptcy settlement. This course of action must be pursued through the provider of the student loan.

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    A student loan provider will have to hold a consultation with you if you can prove permanent disability. Sometimes a student loan provider will forgive student loan debt without filing for bankruptcy first.

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    Be mindful of the fact that if a student loan provider voluntarily forgives student loan debt in this manner, then the entire forgiven debt amount may be considered taxable income by the IRS.

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    In other cases, a student loan provider may forgive student loan debt if your school closed prior to completion of your degree work. In addition, if your school forged your signature on aid documents or falsely qualified you for aid, your debt may be fully or partially forgiven through your lender.

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    Your loans may also be forgiven under certain federal or state teaching incentive programs. In some states it is possible to have loans forgiven after five years of teaching in low income schools.

Tips and warnings

  • During a bankruptcy proceeding, it is to your advantage to have a lawyer.
  • Contact your lender before bankruptcy hearings.
  • Become familiar with state and federal laws governing loan forgiveness.
  • Do not commit fraud in seeking forgiveness of student loans.
  • Have all involved parties explain legal fees associated with bankruptcy.

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