Cancellation/Discharge of PLUS Loans
Note that details provided on this page reference loans made under the Federal Family Education Loan Program (FFELP). Effective July 1, 2010, all new federal student loans come directly from the U.S. Department of Education (ED) under the William D. Ford Federal Direct Loan Program (Federal Direct Loans). For information regarding Federal Direct Loans, refer to the Loans page of ED's Federal Student Aid website or contact the college's financial aid office.
If you have taken out a PLUS loan through FFELP to help pay for your own or your child’s education, all or part of it may be cancelled or discharged (forgiven) for several reasons. You may qualify for total or partial loan cancellation/discharge if:
- The school closed within 90 days of your or your child’s enrollment and the student was unable to finish their program of study. (School Closure)
- The school did not properly qualify your or your child’s status before they began studies. (False Certification/Disqualifying Status)
- You did not receive a refund that was due to you. (Unpaid Refund)
- Your signature was forged. (Unauthorized Signature/Unauthorized Payment)
- The school did not properly evaluate your or your child’s ability to benefit from the coursework before beginning studies. (False Certification of Ability to Benefit)
- You become totally and permanently disabled. (Total and Permanent Disability)
- If you or the dependent for whom the loan was borrowed, dies
- Your loan is discharged due to bankruptcy. (Typically, student loans cannot be discharged in a bankruptcy.) Consult your legal counsel regarding your particular situation.
- Your loan was falsely certified as a result of a crime of identity theft (administrative forbearance).
Your loan cannot be discharged solely because you believe that the school your child attended did at least one of the following:
- Provided poor training, had unqualified instructors, or inadequate equipment
- Did not provide job placement or other services that it promised; or
- Engaged in fraudulent activities (other than falsely certifying the loan)
If you believe you are eligible for loan forgiveness, contact the holder of your loan. If ISAC is the holder of your loan, call 800.899.ISAC (4722).