Can I cancel my student loans?
Previously, we talked about how to legally get rid of your student loans. Let us today take a closer look into the various circumstances that allow your to cancel your student loans. Canceling a student loan is something that can be accomplished given you, the lender, or the school has met or violated certain rules or obligations related to the loan. When summarizing these situations it is best to think of all of the logical situations in which a loan should be canceled. This is not the wishful thinking of many borrowers where they simply do not want to honor the debt, but the true situations where the loan itself was more or less provided under false or fraudulent conditions.
One situation that allows for full loan cancellation is if the school that is being attended closes. This is an important provision because even if a student is near graduation from a multi-year program, if the school closes prior to graduation the student is eligible to apply for full loan cancellation. Cancellation is not guaranteed, but under this circumstance the student does meet the minimum threshold for consideration. This also applies when a school simply discontinues a students specific course of study or if they close an individual campus and not the entire school or program. If the school closes the campus that a student attends, they may be eligible for loan cancellation.
If the school allows a student to attend that is not qualified nor prepared to handle the academic environment of that school, then there is a possibility that student can have the loan canceled under the provision of false certification and ability to benefit. This is primary allowed when a student has not graduated high school nor obtained a GED and yet takes qualifying exams and tests, administered by the school, to see if they are able to participate in the school program. If the exams are not properly administered or are not approved by the federal Department of Education, then it is possible the student could have been falsely certified as being able to benefit from the program and as a result was admitted under a false certification through no fault of their own. In this case it is possible for the the student to request loan cancellation.
False certification and ability to benefit also extends to a provision called disqualifying status. This primarily applies to vocational and technical schools that are teaching with an expectation on the part of the student that at the end of the program they will be fully qualified for a particular career. For example, if the school admits a convicted felon to a security guard training program, and yet the State does not allow for security guards to have a criminal record, that student can apply for loan cancellation.
Loans can also be canceled for a variety of reasons from identity theft to forged loan documents. The key to remember when seeking loan cancellation is that the cancellation has to be through no fault of the borrower’s and not foreseeable by the borrower. Other type of loan cancellations relate to loan forgiveness and loan discharge. These are programs are where the loan is honored and paid off, paid down, or forgiven by employers, through public service, military service or through dozens of other different forgiveness programs.
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