Investigate cancellation, forgiveness, and discharge

Under certain circumstances, your Consolidation Loan, or a portion of that loan, may be cancelled, forgiven, or discharged. In other words, you won't have to repay it.

Below is a summary of some of the cancellation provisions that loan holders, guarantors, and the U.S. Department of Education administer. Contact your loan holder for more information:

Death: If you die, your loan obligation will be cancelled.
Total and permanent disability: Your loan may be cancelled if you become totally and permanently disabled.
Teacher forgiveness: A loan forgiveness program for teachers serving in designated low-income schools exists for new Direct Subsidized or Unsubsidized / Federal Stafford Loan borrowers after October 1, 1998.
Miscellaneous: A portion of your loan may be cancelled in other instances including school closure, false certification, identify theft, failure of the school to pay a refund, or employment in a public service job (public service for Direct Consolidation Loans only).

Bankruptcy information

Generally, federal student loans, including Consolidation Loans, are not cancelled or discharged in bankruptcy proceedings.