Death, Disability and Bankruptcy

Under certain circumstances, your student loan debt may be cancelled. Federal law provides for cancellation due to: 

• Death;
• Total and permanent disability;
• Discharge of debt in bankruptcy;
• Inability to complete your program of study due to the school closing; or false certification of your loan by the school. 

Ask your lender or your school for more information if you feel you may be eligible for loan-cancellation benefits. 

If you believe you are eligible for a loan discharge or cancellation, complete the application forms and send completed forms to the lender or servicer of your loan(s). 

However, if you are only temporarily totally disabled, a deferment is available to cover a period during which a borrower is totally disabled or unable to secure or continue employment because the borrower is caring for a dependent or spouse who is temporarily totally disabled. 

The Stafford/Direct Loan that you are seeking to have deferred must have been disbursed prior to July 1, 1993; PLUS Loan borrowers must have been disbursed before August 15, 1983. 

If you meet these requirements, you may be eligible for a temporary total disability deferment. Complete the deferment request form and send completed forms to the lender or servicer of your loan(s). For further information, see the Federal Student Aid website.