Finance & Loans

Ways to discharge your student loan rather than defaulting

Written by: Financial Haze

According to data from the Federal Reserve Bank of New York, the student loan debt now stands at $1.6 trillion. More and more students are getting into student loan debt and that represent more than $77 billion over the last year. One phenomenon that the bank has observed is the delinquency rate and the entire financial sector is concerned over the ever increasing default rate.

Instead of defaulting on student loans which could bring financial disaster for some, there are ways to obtain a debt cancellation, debt forgiveness or a debt discharge. Those who carry a student loan balance and become permanently or totally disabled may be eligible for a discharge. Required evidence may include proof of Social Security eligibility, note from the doctor and other documents. If you attend a school that has been permanently shut down, you may also be eligible to get a discharge of your student loan. In some cases if the school fraudulently approved your student loan, it may also qualify for a discharge. Under very limited situations bankruptcy may allow a discharge of student loan debt contrary to the popular belief. If a loan is obtained in your name fraudulently by someone else you may be eligible for a discharge.