False Loan Certification
To Be Eligible …
This discharge is for borrowers whose schools falsely certified their eligibility for a loan. This can be caused by a school official falsely signing the borrower’s name on a loan application or master promissory note, which resulted in the borrower not benefitting from the funds. This is called a false certification due to unauthorized signature.
False certification also occurs when a school admits a student even though the student did not meet the requirements of admission. In this instance, the borrower did not have the ability to benefit from the education received. This is called a false certification due to ability to benefit.
The final cause of false loan certification is disqualifying status, meaning the student is unable to meet the legal requirements for employment in the student’s state of residence in the occupation for which the program of study was intended due to age (upon completion of training), physical or mental condition, criminal record, or other reason. At the time the loan was issued, this disqualifying status must have existed and the school must have been aware of it.
This discharge option is only for loans received on or after January 1, 1986.
If you meet these requirements, you are eligible to receive up to 100% of your federal student loan discharged.
Loans That Qualify
- Stafford loans
- Grad PLUS loans
- Parent PLUS loans
- Consolidation loans
To apply for this type of discharge: