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Discharge Student LoansIt seems that everyone knows student loans can’t typically be discharged by filing bankruptcy. The only way to get a bankruptcy discharge of your student loan debt is to show an undue hardship. Besides the fact that it is incredibly difficult to show an undue hardship, proving an undue hardship is a very costly process that involves filing “adversary proceeding” in bankruptcy court, which is essentially a lawsuit against your student loan creditor in bankruptcy court.

But there is a more cost effective way. It’s called Administrative Discharge, and it’s only available for federal student loans.  Most people have no idea that this is an option, and all its takes is to fill out the appropriate paperwork, send it in your student loan servicer with an supporting evidence, and you will receive a decision within 60 days.

Here are the ways you can get your student loan administratively discharged

School Closure If your school closes within 90 days of your enrollment and you were unable to complete your program of study, you can qualify for a discharge. One caveat is that you must not have completed a similar course of study at another school with credit transferred from the closed school.
Unpaid Refund Since federal loans are funded to the schools directly from the Department of Education, any excess is paid directly to you as a refund.  If you never received this refund, you can get that amount discharges, but not the entire loan.
False Certification If you school does not properly ensure you were qualified to enter the program, you can get your loans discharged. Some examples include:1. School forging your signature or altering your loan documents.

2. Truck driving school admitting a person not qualified to drive because of a medical condition (blind, seizurs, etc.).

3. Identify Theft.

Total and Permanent Disability or Death If you become completely and permanently disabled or die. If you die, your parents will not have to pay off Parent PLUS loans.