Stafford and Plus Loan Forgiveness | 04.18.08

Posted in Stafford Loan, Student Loans By Student Loan Network Staff


People say to me Dave, because that’s my name, they say Dave can I have a portion of my federal Stafford or Plus loans forgiven? That’s when I hit high gear and impress them with my ready knowledge and quick wit.

I figured since I’ve been fielding this question a lot recently it might be a good idea to publish the bible you see below for your benefit. Bathe in my knowledge.

Stafford and PLUS Loan Discharge and Cancellation Summary Chart

Discharge / Forgiveness Condition

Amount Discharged / Forgiven


Borrower’s total and permanent disability or death

100 percent

For a PLUS Loan, includes the death, but not disability, of the student for whom the parents borrowed

Full-time teacher for five consecutive years in a designated elementary or secondary school serving students from low-income families. Must meet additional eligibility requirements.

Up to $5000 (up to $17,500 for teachers in certain specialties) of the total loan amount outstanding after completion of the fifth year of teaching.

Under the Direct and FFEL Consolidation Loan programs, only the portion of the consolidation loan used to repay eligible Direct Loans of FFEL Loans qualifies for loan forgiveness

For Direct and FFEL Stafford Loan borrowers with no outstanding balance on a Direct or FFEL Loan on the date they received a loan. PLUS Loans are not eligible. At least one of the five consecutive years of teaching must occur after the 1997-98 academic year.

To find out whether your school is considered a low-income school, go to Click on “Students, Parents and Counselors,” or call 1-800-4-FED-AID

Bankruptcy (in rare cases)

100 percent

Cancellation is possible only if the bankruptcy court rules that repayment would cause undue hardship.

Closed school (before student could complete program of study) or false loan certification.

100 percent

For loans received on or after January 1, 2006.

False loan certification now includes identity theft

100 percent

Effective July 1, 2006

School does not make required return of loan funds to the lender

Up to the amount that the school was required to return.

For loans received on or after January 1, 1986.

Information provided by the Department of Education.

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3 Responses to “Stafford and Plus Loan Forgiveness”

  1. Peg says on July 12, 2008 at 12:09 pm:

    While my sons pursued their education, I signed PLUS loans for them with the understanding that they and their father would make the payments. However, their father and I divorced. He’s thumbed his nose at the payments and neither of our sons are able financialy to contribute yet. In addition a consequent move and change in jobs has dropped my annual income to $32,000. There is no way I can make this $440 per month payment, my own school loan payment and regular monthly bills. Is there a way that I can make reasonable payments without moving into a cardboard box?

    Reply To This Comment
  2. Debbie Ullery says on May 31, 2008 at 4:26 pm:

    I need the hardship forebearance form. Please
    acct #511-80-1510

    Reply To This Comment
  3. randi says on April 24, 2008 at 7:28 am:

    i read your thread. i have sub and unsub loans from undergrad and graduate coursework, .will thses loans be paid in full upon my death?

    Reply To This Comment

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