PLUS Loan Forgiveness

The entire PLUS loan or a portion of your obligation may be cancelled for several reasons. You may qualify for total or partial loan forgiveness if:

You as borrower become totally and permanently disabled.
You, the borrower, or the student covered by the loan, dies.
Bankruptcy only if the bankruptcy court rules that repayment would cause undue hardship.


The school closed before student could complete program of study.
The borrower’s signature was forged (for loans received on or after January 1, 1986).
The school does not make required return of loan funds to the lender. The cancellation will be up to the amount that the school was required to return (for loans received on or after January 1, 1986).
Your loan will not be forgiven if you believe that the school your student attended:

Provided poor training or had unqualified instructors or inadequate equipment
Did not provide job placement or other services that it promised
Engaged in fraudulent activities (other than falsely certifying the loan).
You must contact your lender and apply for loan forgiveness if you believe it is warranted.