What can I do with my loan if a withdraw from my school?
You can opt for an unpaid refund discharge if your case is eligible for it.
Did you withdraw from school after receiving your federal student loan?
No, but I'm thinking about it.
If you do then do you think your school could fail to return the loan funds to your loan servicer?
I think it could happen, yes.
In that case, you can be eligible for a discharge of your loan, but only the portion that the school fails to return.
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And for parents, in the case of a Direct PLUS Loan, can their loan be discharged as well?
The same applies to parents with a Direct PLUS loan. If their child withdraws from school and the school fails to return the parent PLUS loan funds then the portion that it's failed to be returned would be withdrawn from the loan.
Are you a parent of a student in that situation?
 Well, not me but my parents, yes.
Then you now know that the amount of the loan that the school fails to return will be discharged.
