Understand loan cancellation, forgiveness, and discharge
Under certain circumstances, your student loan, or a portion of your loan, may be cancelled, forgiven, or discharged (in other words, you won't have to repay it). If, based on the chart below and its linked definitions, you think you are eligible for loan cancellation, contact your loan holder.
- Be sure to contact all of your loan holders, and don't stop making payments until you receive written notification that your loan has been cancelled from each one, if applicable.
- If only a portion of your loan was cancelled, update your records with your new balance after verifying the information with your loan holder.
| Cancellation Condition | Federal Stafford Loans* | Federal PLUS Loans (for Parents or Graduate Students)* | Federal Perkins Loans | Federal Consolidation Loans* ** |
|---|---|---|---|---|
| Child Care Provider | X | |||
| Closed School | X | X | X | X |
| Death | X | X | X | X |
| Disability | X | X | X | X |
| Education Component of Head Start Program Staff Member | X | |||
| False Certification by School | X | X | X | |
| False Certification due to Identify Theft | X | X | X | |
| Law Enforcement or Corrections Officer | X | |||
| Nurse or Medical Technician | X | |||
| Professional Provider of Early Intervention Services for the Disabled | X | |||
| Public or Non-Profit Child or Family Services Agency Employee | X | |||
| Public Sector Employees | X*** | X*** | X*** | |
| Spouses and Parents of September 11, 2001 Victims and Public Servants | X | X | X | X |
| Teacher Forgiveness | X | X | X | |
| U.S. Armed Forces | X | |||
| Unpaid Refund | X | X | X | |
| Vista or Peace Corps Volunteer | X | |||
* Subsidized and unsubsidized Federal Stafford Loan, Federal PLUS loan (for parents or graduate students), and Federal Consolidation Loans eligibility is the same for the Federal Family Education Loan Program and the Federal Direct Loan Program, except where noted. ** Only a portion of a Federal Consolidation Loan may be eligible for cancellation, forgiveness, or discharge.</> *** Available for Federal Direct Loans only (not Federal Family Education Loans) |
||||
This chart only contains cancellation programs that loan holders, guarantors, and the U.S. Department of Education administer.
Other federal programs
Indian Health Service Loan Repayment Program: Health professionals sign a contract, agreeing to work for a period of time in IHS health care facilities. In return, the IHS repays part or all of the health professional's debt for professional training education.
National Health Services Corps - Loan Repayment Program: Medical professionals, including physicians, nurses, and dentists, agree to provide health care services for a minimum of two to four years in areas of the country with the greatest shortage of medical professionals. In return, the National Health Services Corps offers scholarships and/or loan repayment programs.
Nurses Reinvestment Act: A scholarship/loan repayment program, authorized in the Public Health Services Act for administration by the Federal Department of Health and Human Services, for nursing students that agree to serve in critical need areas after college graduation.
State programs
- North Dakota Loan Repayment and Matching Repayment Programs for Physicians; Dentists; Nurse Practitioners, Physician Assistants and Certified Nurse Midwives; and Veterinarians
- North Dakota Teacher Shortage Loan Forgiveness Program
- North Dakota Technology Occupations Student Loan Forgiveness Program.
Tuition assistance and loan repayment programs
Employers, states, and private organizations may offer loan cancellation or repayment programs. Check with your state department of higher education for more information and ask your employer about tuition assistance and loan repayment programs.