Statutory Discharges

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The most efficient and complete way to get relief for school-related problems is often through a statutory discharge program. These discharges, however, are limited. Only borrowers who qualify for closed-school, false-certification, or unpaid-refund discharges can get this relief. Borrowers may also be able to obtain partial or full discharge of their loans based on school misconduct by asserting a borrower defense to repayment. Borrowers may also qualify for discharges unrelated to school problems, if they are totally and permanently disabled or meet the criteria for public service or other job-related discharge programs.

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