Administrative discharge, also called statutory discharge, cancels the entire student loan debt. The five (5) ways to discharge a federal student loan are as follows
- Closed School- The school’s closure while the student borrower was still enrolled.
- False Certification- The school’s false certification of the student borrower’s eligibility, including false certification due to forgery or identity theft.
- Unpaid Refund- The school’s failure to pay a refund owed to a student borrower.
- Disability- The borrower’s permanent and total disability.
- Death- The borrower’s death.
All of the above administrative discharges have detailed and specific requirements which must be met to qualify for such a discharge. It is best to consult with a qualified student loan attorney to understand the requirements and regulations.