Under certain circumstances, you can cancel your student loans. If you are successful in canceling your student loan, you may be entitled to receive all the money that’s been seized and all payments that you made. Before you get too excited, you should note that canceling a student loan can only happen under certain very limited circumstances. These are:
- School Closed. The Close School cancellation applies to federal family education loans (“FFEL”), Federal direct loans, and Perkins loans. If your school has closed, you may very well be eligible to cancel your loans.
- False certification. If a borrower has borrowed money through a school that has falsely certified the borrower’s eligibility, then the borrower may cancel that loan. The Department of Education recognizes four bases for false certification including:
- the school falsified and non-high school graduate’s ability to benefit from the program;
- the school enrolls a student unable to meet minimum state employment requirements for the job for which the student is being trained;
- the school forges or alters the student loan note or check endorsement;
- the borrower is a victim of identity theft.
If you’ve been harassed or abused by student loan debt collector, call or e-mail Attorney Gary Nitzkin at Michigan consumer credit lawyers toll-free at (888) 293-2882.