Apply for cancellation of a loan by contacting the lender. In the event that a borrower dies, the executor is responsible for notifying the lender of the problem. Any Federal loan will be forgiven upon the death of the borrower, though a copy of the death certificate will be required.
Apply for discharge if you are permanently and totally disabled. You will have to fill out a form for Federal loan discharge, and a doctor will have to verify your condition to the lender.
Apply for loan cancellation for reasons related to the school. If you were enrolled by someone else without your knowledge or loans were taken out in your name without your knowledge, contact the lender and the school to resolve the situation. You can also cancel a loan in the event that the school closed before you completed your degree program, though you will need to contact the lender in order to do so.
File for bankruptcy to attempt to cancel your student loans. Often, the court will consider whether you tried to repay your loans or not, so it is important to try your best to make payments on loans for as long as possible before attempting to discharge the rest in bankruptcy. You will be expected to show your income and expenses and the court will determine how long your financial issues are likely to continue in considering your bankruptcy petition. However, canceling loans through bankruptcy can be difficult since lenders offer many flexible payment options for borrowers, even during long terms of unemployment.
Select the Income-Based Repayment plan or the Income-Contingent Payment plan when you begin repayment for federal loans. You will be expected to make loan payments for 25 years. The amount you pay will depend on your income, and it is possible to pay as little as a few dollars each month. After 25 years, any unpaid amount left on your loan will be forgiven. However, you may have to report the forgiven amount as taxable income.