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The loans that can be discharged on the basis of a disability include federal education loans, including those granted by: The Federal Perkins Loan Program The Federal Family Education Loan Program
The U.S. Department of Education announced that it will automatically forgive federal student loans for at least 323,000 borrowers who have total and permanent disabilities. An estimated $5.8 ...
Any federal student loans, including Parent PLUS Loans, opened after 2011 may qualify for a borrower defense loan discharge if the application meets the requirements.
Borrowers can find the paper application on the FSA Forms Library by clicking on "Loan Forgiveness and Discharge" and selecting "Federal Student Loan Debt Relief" to download the English or ...
Income from discharge of indebtedness. Although a loan does not start out as income to the borrower, it becomes income to the borrower if the borrower is discharged of indebtedness.: 111 Thus, if a debt is discharged, then the borrower essentially has received income equal to the amount of the indebtedness.
You’ll need to ask your loan servicer for a loan discharge application. For more details about the program, check out the Department of Education’s closed school discharge program. 12.
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