financing your dream
Forgiveness or Cancellation
In some cases, the amount a person owes on a federal student loan can be cancelled or forgiven. Which of these situations may lead to full forgiveness?
- When students drop out before graduating
- When students cannot afford to complete their course of study
- When a school has provided false certification or was closed before the student completed the required program
“C” is correct. Death and permanent disability also may result in full forgiveness. Some federal loans allow full or partial forgiveness if you teach or provide services to needy populations, volunteer for government programs (i.e., VISTA or Peace Corps), work in health care or law enforcement, or belong to the armed services.