There’s one additional way to achieve student loan forgiveness which is called discharge. Discharge is granted under very rare circumstances, like permanent disability or death. It is generally awarded by a judge and can apply to both Federal and private student loans.Student loan discharge is the release of a borrower from the obligation to repay the loan. It is the cancellation or forgiveness of a debt. Loan discharge results in taxable income to the debtor unless the forgiveness is a gift or bequest.
When a debt is discharged by any institution, the debtor will receive a notification of the amount of debt forgiven depending upon the circumstances on which debt discharge was given. While filing the tax return the debtor must report it as miscellaneous income.Discharge of a student loan applies to severe situations. Some of the categories where discharge applies include: death or total and permanent disability; school closing; bankruptcy (this is rare); disaster situations (surviving spouses of men and women killed in the 911 terrorist attack); fraud (if someone fraudulently used your name to obtain a loan); or medical (someone who suffers from severe physical or mental impairments).The debtor has to convince the authorities regarding any of the above situations that might have occurred.
Here are some of the resources that might be of great help in order to file a debt discharge application.
1. Federal Student Aid
Federal Student Aid, a part of the U.S. Department of Education, is the largest provider of student financial aid in the country. The office of the Federal Student Aid helps make college education possible for every dedicated mind by providing more than $150 billion in federal grants, loans, work-study funds each year to more than 13 million students paying for college or career school and helping them overcome debt burden.
https://studentaid.ed.gov/repay-loans/forgiveness-cancellation
2. Disability Discharge
This guide will help those who are in search of resources for acquiring knowledge regarding Total and Permanent Disability Discharge.
http://www.disabilitydischarge.com/Home/
3. Fed Loan Servicing
Pennsylvania Higher Education Assistance Agency (PHEAA) was established to support the U.S. Department of Education’s ability to service student loans owned by the federal government.PHEAA has evolved into one of the nation’s leading student aid organizations. Today, PHEAA is a national provider of student financial aid services, serving millions of students and thousands of schools through its loan guaranty, loan servicing, financial aid processing, outreach, and student loan discharge management.
http://www.myfedloan.org/manage-account/loan-forgiveness-discharge-programs/
4. Student Loan Borrower Assistance
SLBA is focused on providing information about student loan rights and responsibilities for borrowers and advocates. SLBA also seeks to increase public understanding of student lending issues and to identify policy solutions to promote access to education, lessen student debt burdens and make loan repayment more manageable. Some of the most common inquiries that students have in their minds could be eradicated by having a look at the link below:
http://www.studentloanborrowerassistance.org/loan-cancellation/disability-and-death/disability-discharge-tips-and-faqs/
5. Nelnet
Nelnet is thriving to make educational dreams possible by helping students, families, educational institutions, and organizations that serve them prepare for, deliver, and finance education and helping to manage the administrative burden of doing so. Some of the additional loan assistance options could be found below:
http://www.nelnet.com/Additional-Loan-Assistance-Options/
6. American Education Services
AES is a national leader in providing quality customer service to millions of student loan borrowers through its highly trained and experienced customer service representatives. There are certain conditions in which the federal student loan may qualify for loan discharge mentioned in the following link:
http://www.aessuccess.org/manage/loan_forgiveness_discharge/loan_discharge.shtml
7. Edvisors
Edvisors.com is a trusted source of information and insights for millions of students and families looking to plan and pay for college.Some key facts that might be of great help regarding student loan discharge could be found on the Edvisors website.
https://www.edvisors.com/repay-student-loans/federal/cancel/discharge/
8. Student Loan Hero
Student Loan Hero is an unbiased solution to organize, manage, and repay your student loans. SLH goal is to help student loan borrowers understand their student loans and make intelligent repayment decisions.Discharging loans through Bankruptcy is a last resort option but it is and one must look for it as well.
https://studentloanhero.com/featured/how-to-discharge-student-loans-via-bankruptcy/
9. Student Debt Relief
Student Debt Relief is here to raise awareness on the various federal student loan forgiveness programs that are available to borrowers. They strive to maintain a knowledge base to help students from before their college career begins, to after they have graduated.
http://www.studentdebtrelief.us/forgiveness/student-loan-discharge/
10. Nolo
Our mission is to help consumers and small businesses find answers to their everyday legal and business questions.Consumers and small businesses are encouraged to handle many legal matters themselves and Nolo network’s guide would help them doing so.
http://www.nolo.com/legal-encyclopedia/canceling-student-loans-teaching-volunteer-work-public-service.html
11. FinAid
FinAid.org has grown into one of the most comprehensive source of student aid information advice and tools. Students think of bankruptcy as their only option for getting their loans discharged and this document would clear some of the misled minds.
http://www.finaid.org/educators/20070814pslFICOdistribution.pdf
12. Credit.com
Credit.com has been the go-to source – for people across the credit spectrum – for expert information about credit scoring, credit reporting and credit cards. They have an expert team of writers that puts light on various economic issues prevailing and the post below puts a light on the impact of student loan discharge on tax liability.
http://blog.credit.com/2012/04/cancelled-student-loan-debt-creates-tax-nightmare-55658/
13. TGSLC-Texas Guaranteed Student Loan Corporation
TG offers resources to help students and families plan and prepare for college, learn the basics of money management, and repay their federal student loans. They are pity on making all the options of student loan discharge available to borrowers. If a borrower is facing any kind of disability then a form for Total and Permanent Disability Discharge could be found here:
http://www.tgslc.org/forms/disability.cfm
14. National Defense Student Loan Discharge
The program was introduced to encourage students to apply for military colleges without thinking too much of loans and if they are unable to repay their loan and perfectly fit the eligibility criteria of NDSLD, then they’ll get a permanent discharge on these loans.
15. Sandiego.edu
Sandiego.edu have a complete guide for you that illustrates all the aspects of Student Loan Forgiveness and Discharge which would definitely be of great help since all the required information could be found under an umbrella.
http://www.sandiego.edu/financialaid/documents/60-ways-to-get-rid-of-your-student-loans-without-paying-them.pdf
16. State Side Legal
All the information for military households, veterans and families could be found here. Their goal is to help military personnel access benefits, finding free legal help and better understand financial and legal issues.
http://statesidelegal.org/student-loan-discharge-or-forgiveness-and-military-service
17. Zero Hedge
Zero Hedge’s mission is to widen the scope of financial, economic and political information available to the people by the people. Since its inception it has thrived to communicate all the knowledge available for opening up minds of individuals and this resource on Student Loan Discharge is no exception.
http://www.zerohedge.com/news/2013-02-28/primer-discharging-student-debt
18. MI Student Aid
The Student Financial Services Bureau (SFSB), located within the Michigan Department of Treasury, encourages students to pursue postsecondary education by providing equality of access to student financial resources and information. Here are some of the options made available to students in order to get their loans discharged.
http://www.michigan.gov/mistudentaid/0,4636,7-128-60970_61103_61113-129874–,00.html
19. Military.com
Military.com is committed to the mission of connecting the military community to all the advantages earned in service to America.
http://www.military.com/money/personal-finance/credit-debt-management/military-student-loan-forgiveness-and-discharge-programs.html
20. Alltuition
Alltuition.com makes sure you don’t miss out on financial aid. Based on the colleges where you’re applying for aid, they instantly match you to your opportunities and help you maximize your chances for aid.
https://www.alltuition.com/library/student-loan-repayment/cancel-student-loans/student-loan-discharge/
