Attending a specific college does not automatically wipe out federal student loan debt.
However, the U.S. Department of Education has canceled billions of dollars in federal loans for students who attended schools that lied to them, misled them about job opportunities, or violated consumer protection laws.
Here is a breakdown of how these programs work, which schools are frequently linked to relief, and who may qualify.
Key Programs for Loan Cancellation
- Borrower Defense to Repayment: If a school misled students about job placement rates, expected earnings, credit transferability, or accreditation, affected borrowers can apply to have their federal student loans canceled.
- Closed School Discharge: If a college or trade school shuts down while a student is enrolled (or shortly after they withdraw), the student may qualify to have their federal loans erased.
- Public Service Loan Forgiveness (PSLF): Available to qualifying government and non-profit workers after making 120 eligible monthly payments.
- Income-Driven Repayment (IDR) Plans: Offers forgiveness after paying a set percentage of monthly income over a period of 20 to 25 years.
Schools Frequently Linked to Federal Loan Relief
While there is no single official list that guarantees automatic forgiveness for everyone, the U.S. Department of Education has previously approved group discharges or widespread claims for former students of institutions including:
- Corinthian Colleges (including Everest, Heald, and WyoTech)
- ITT Technical Institute
- Westwood College
- The Art Institutes
- Marinello Schools of Beauty
- DeVry University (certain claims)
- Kaplan Career Institute (certain claims)
- American Career Institute
- Minnesota School of Business and Globe University (certain claims)
Important Details to Keep in Mind
- Federal Loans Only: These relief programs generally cover federal student loans, not private student loans.
- Not Always Automatic: Unless the Department of Education issues a group discharge for a specific school, individual borrowers usually need to submit an application explaining how the school misled them.
- Evidence Matters: Borrowers applying for Borrower Defense should gather documentation such as enrollment agreements, promotional materials, emails, or transcripts.
What to Do Next
If you believe your school engaged in deceptive practices, you can review eligibility requirements and submit a Borrower Defense to Repayment application directly through the official U.S. Department of Education website.
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