Loan Cancellation & Forgiveness

You must repay your loans even if you don't complete your education, can't find a job related to your program of study, or are unhappy with the education you paid for with your loan. However, certain circumstances might lead to your loans being forgiven, canceled, or discharged.

Type of Forgiveness

Federal Direct Stafford / PLUS Loans

Federal Perkins Loans

Texas B-On-Time (BOT) Loan

Total and Permanent Disability Discharge




Death Discharge




Teacher Loan Forgiveness




Public Service Loan Forgiveness




Perkins Loan Cancellation and Discharge (includes Teacher Cancellation)




Graduation GPA Forgiveness




Important Tips

  • Cancellation/forgiveness is not automatic; borrowers must submit a completed application to their servicer.
  • The servicer will determine eligibility and notify the borrower once the request has been processed.
  • The borrower is responsible to continue making regular monthly payments until the request has been processed.

Application Process

Borrowers must contact their loan servicer to apply for any of the cancellation or forgiveness options. (A servicer is the organization/entity responsible for collecting payments and managing the loan during repayment.)

Federal Direct Stafford or PLUS Loans: Your loan servicer will provide details and forms needed to complete the application process. Borrowers can identify their loan servicer by looking up their oan details on NSLDS (National Student Loan Database System).

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