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Student loan debt typically survives bankruptcy due to a provision in U.S. bankruptcy law. Discharging such debt requires proving undue hardship, a difficult standard to meet, which entails showing severe, lasting financial distress caused by the loans.
you no longer have further obligation to repay the loan, you will receive a reimbursement of payments made voluntarily or through forced collection, and. the discharge will be reported to credit bureaus to delete any adverse credit history associated with the loan.
Your loan can be discharged only under specific circumstances, such as school closure, a schools false certification of your eligibility to receive a loan, a schools failure to pay a required loan refund, or because of total and permanent disability, bankruptcy, or death.
For discharge other than borrower defense, contact your loan servicer, and theyll guide you as to how to apply. If you have a Federal Perkins Loan, your loan can be discharged based on permanent disability, bankruptcy, or death.
There are certain eligibility requirements to qualify for a closed school loan discharge; if ED has sufficient information to determine you qualify for a discharge, your loan will generally be automatically discharged one year after your school closes.
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People also ask

You may be eligible for income-driven repayment (IDR) loan forgiveness if youve have been in repayment for 20 or 25 years. An IDR plan bases your monthly payment on your income and family size.
You can go back to school and get a new Direct Loan or TEACH Grant after getting a TPD discharge. But to do so, you must do the following: Give your school a letter from a doctor of medicine or doctor of osteopathy/osteopathic medicine stating that you are once again able to engage in substantial gainful activity.
Under the law, you may have a borrower defense to repayment if your school engaged in certain misconduct related to the making of a federal loan or the educational services it provided which caused you harm warranting a full discharge of your applicable federal Direct Loans.

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