January 15th, 2010 by Reed Allmand 
As we mentioned in Part I, most debtors find it difficult to discharge their student loans in bankruptcy. However, there are several other ways to discharge your student loans before, after or even during bankruptcy. As we mentioned in Part I of “Are There Other Ways To Discharge My Student Loans Besides Bankruptcy?”, a debtor who cannot discharge their loan in bankruptcy can receive a discharge if they are permanently disabled, dead (and in the case of PLUS loans, the parents will receive the discharge) or a veteran who has been permanently disabled in the line of duty. Let’s take a look at some other ways to discharge your student loan.
You may receive a discharge of you student loans if your student loan was falsely certified. Student loans are considered falsely certified if the school:
- Admitted the student loan debtor on the basis of ability to benefit from its training and you did not meet the applicable requirements for admission on the basis of ability to benefit; or
- Signed the student loan debtor’s name without their authorization on the loan application or promissory note; or
- The student loan debtor had a physical, mental, or legal status or condition at the time of enrollment that would legally bar employment in their field of study.
- The student loan debtor is the victim of identity theft.
A student loan debtor may also receive a discharge of their student loan if they were unable to complete their program of study because the school closed. Once a debtor receives a discharge through the Department of Education, they will no longer owe the student loan and and any payments made in the past will be refunded to the debtor.
About Reed Allmand
Allmand's vision is rooted in his own financially precarious childhood in Abilene "My father always had difficulty holding a job and supporting our family, so after my parents divorced when I was 12, my sister and I got jobs to help make ends meet," he recalls. "I remember what it felt like as a child to worry that our car would be repossessed or home foreclosed on."
View all posts by Reed AllmandSubscribe
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