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If you have taken out a PLUS loan through FFELP to help pay for your child’s education, all or part of it may be cancelled (forgiven) for several reasons. Contact your loan holder (lender) to obtain the forms needed to apply for loan forgiveness based on the following conditions.
You may qualify for total or partial loan forgiveness if:
- The school closed within 90 days of your child’s enrollment and they were unable to finish their program of study.
- The school did not properly qualify your child’s status before they began studies.
- You did not receive a refund that was due to you.
- Your signature was forged.
- The school did not properly evaluate your child’s ability to benefit from the coursework before beginning studies.
- You become totally and permanently disabled.
- If you or the dependent for whom the loan was borrowed, dies
- Your loan is discharged due to bankruptcy. (Typically, student loans are not dischargeable in a bankruptcy.) Consult your legal counsel regarding your particular situation.
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).
Click here for more information about FFELP loan forgiveness.
For information concerning the Federal Direct PLUS Loan Program, click here.
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