How To Qualify
If a portion or all of your federal student loans was supposed to have been returned to your lender and your school did not return the funds, you may be eligible for this discharge. Only the portion of the loan that should have been returned and wasn't would be eligible for discharge.
For example: You withdrew from school before the beginning of the semester, but your school kept the loan money you had initially intended to borrow instead of returning it to the lender, which they were required to do.
Remember that it's possible for a school's refund policy to be different than the federal loan refund requirement. In some cases, loans are required to be returned when a student's school status changes, leaving a balance owed by the student to the school.
What You'll Need
Along with the discharge application, you may need to provide proof showing that your loan should have been refunded, such as your enrollment dates.
The following loans disbursed on or after July 1, 1986, may be eligible:
- Subsidized Stafford loans
- Unsubsidized Stafford loans
- Grad PLUS loans
- Parent PLUS loans (the student that the loan was borrowed for must be eligible)
Perkins loans are not eligible for this discharge.
Where To Send This Form
Submit to your loan holder. If you don't know who that is, you can go to the National Student Loan Data System (NSLDS®) to find out.