Education loan Cancellation

Cancellation refers to the permanent canceling of a student's education loan due to extenuating circumstances in the student's life that makes it impossible for them to repay the loan.

One circumstance that will allow a loan to be cancelled is death. If a person who has education loans dies, most loans allow for the cancellation, so the people that are left behind when the person dies are not required to pay back the loans.

Another reason that a loan could be cancelled is if the person becomes permanently disabled. Permanent disability that keeps the person from being able to work could qualify the education loans to be cancelled. Students should read their loan agreements carefully to understand what circumstances are allowed for cancellation. They should understand that cancellation is a rare option, and only occurs under severe extenuating circumstances. Students should go into their loan agreements counting on having to pay back the loan, not counting on cancellation.

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