Financial Aid Loan Cancellation

Student loans are just what they sound like - something that is loaned out and must be given back. However, there are a few situations in which certain types of loans can be canceled, and thus, not paid back. The Perkins Loan, for example, might qualify for cancellation if the loan holder works as a teacher in a low-income school for five or more years. This condition is special to the Perkins Loan, and does not necessarily apply to all types of loans. Some Stafford loans may also qualify for this type of cancellation.

More dire conditions that could allow for a loan cancellation are permanent disability or death. If a loan holder is deemed too disabled to work because of an accident or other unfortunate life situation, he or she may have their loan cancelled. This condition is decided on a case-by-case basis. Also, in the event of a loan holder`s death, a student loan is canceled instead of being passed on to family members. Each loan works in unique ways, so it is best to check with specific lenders for details on cancellation options. Do take note, cancellation is only granted in very specific or dire situations.