Updated: Jul 28
The sudden disappearance of student loans can be a confusing and unexpected event for borrowers. While there are a few possible explanations for why this might happen, it is important to understand that loan forgiveness is relatively rare and typically requires meeting certain criteria. In this blog post, we will explore some of the reasons why student loans might disappear, drawing on facts, figures, and statistics.
First, let's consider loan forgiveness programs. There are a few federal loan forgiveness programs that can result in the discharge of student loans, including the Public Service Loan Forgiveness (PSLF) program and the Teacher Loan Forgiveness program. However, these programs require borrowers to meet specific criteria, such as working in certain public service or education roles for a certain number of years. According to the U.S. Department of Education, as of June 2022, just over 350,000 borrowers had received loan forgiveness through the PSLF program.
Another possible explanation for the disappearance of student loans is a discharge due to disability. Borrowers who are permanently disabled may be eligible for a discharge of their federal student loans. According to data from the U.S. Department of Education, nearly 56,000 borrowers had received a disability discharge as of June 2022.
Additionally, there have been a few instances of student loans being discharged due to legal action. For example, in 2018, a court ordered the Department of Education to discharge the loans of thousands of borrowers who had attended schools operated by the for-profit Corinthian Colleges chain, which had engaged in deceptive and illegal practices.
It is worth noting that the disappearance of student loans is relatively rare and typically requires meeting specific criteria or legal action. While it can be tempting to hope for loan forgiveness, borrowers should be aware of the limited options available and plan to repay their loans unless they meet the criteria for forgiveness.
The disappearance of student loans can occur due to loan forgiveness programs, disability discharge, or legal action. However, these occurrences are relatively rare and typically require meeting specific criteria. Borrowers should plan to repay their loans unless they meet the eligibility requirements for loan forgiveness.