Most student loans are not eligible for cancellation. Fortunately, there are exceptions.
Tip:There are very specific eligibility requirements you must meet to qualify for loan forgiveness or receive help with repayment.
Federal Student Loans
Student loans generally can’t be cancelled. But if something happens, you might need to defer a year or forgo college all together. So long as you haven’t spent any of the money you applied for, you can cancel all or a portion of it as long as you received it within the last 120 days. You won’t be charged interest or fees when you return the money.
Private Student Loans
Unless the private lender wrote a special clause regarding cancellation, they usually don’t have to and won’t honor your request to cancel your student loan. You could consider filing for bankruptcy relief but that should be a last resort since it hurts your credit history for at least 7 years.
There Are Many Types of Student Loans
The two main types of student loans are federal and private. Within each type are subsets that might appeal to you based on your credit history, financial need, and other factors.
Federal loans were established to help students with limited funds, or a poor credit history, receive a good education. Private loans offer customized options to students with a strong credit history.