Is it possible to be eligible for a discharge if my loan servicer did not make the required return of loan funds to the loan servicer when I withdrew from school?
Yes, you can learn more about the unpaid refund discharge to see if you qualify or not.
Did you withdraw from school after receiving a loan made under the William D. Ford Federal Direct Loan Program or Federal Family Education Loan?
Yes, I withdrew after receiving the William D. Ford Federal Direct Loan Program loan.
Then the school would have been required under federal regulations to return some or all of the loan money to your loan servicer.
Will the discharge be for the whole amount?
The discharge would be for the portion of the loan that the school did not return.
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How do I apply for an unpaid refund dischargeif the school is still open?
You should be able to contact the school and attempt to resolve the problem with them before applying for an unpaid refund.
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What if I am parent who received a Direct PLUS Loan to help pay for my child's education, will my loan be discharged due to unpaid refund?
Actually, yes, the amount the school should have returned will be discharged.
What will happen if my child withdrew from school but the school never made a return of the parent PLUS loan funds?
You will get the amount of the loan the school should have returned discharged.
