Loan Discharge (Forgiveness) Options

Based on terms of your original loan agreement you may qualify for Loan Discharge in the event of a borrower death or a borrower becoming totally and permanently disabled. Additional eligibility criteria and requirements may apply. To determine if you qualify, please call us at 844.925.6269.

• Death Discharge - In the event of a borrower’s death, and if acceptable documentation such as a copy of the death certificate or letter of appointment of the estate certified by the applicable court, is received. Loans are not discharged due to cosigner death. However, cosigner may be removed upon verification of death with acceptable documentation.

• Disability Discharge - If the primary borrower becomes totally and permanently disabled ("TPD"). In order to establish total and permanent disability, it must be demonstrated that the primary borrower is unable to engage in any substantial gainful activity due to a physical or mental impairment as described in the Disability Discharge Request Form. Approval is at the discretion of MOHELA.

Important Information regarding Total and Permanent Disability Discharge:

• Except where required by state law, cosigners are not eligible to be removed from the loan due to total and permanent disability.

• When applying for Disability Discharge, the applicant must provide a filed copy of their most recent tax return and is required, even if income is below the required threshold to file a tax return.

• Applicants will be required to complete the Disability Discharge Request Form and show proof of permanent disability indicating inability to engage in any gainful activity, in any field of work, by reason of a medically determinable physical or mental impairment. Supporting documentation is required.

• The approval of a full discharge of the loan(s) owned by MOHELA may be subject to a 12-month monitoring period. You may be granted immediate discharge due to the following:

  • Applicant is a veteran, unemployable due to a service-connected disability and documentation from the VA stating such determination, is provided.

  • Applicant has received a Total and Permanent Disability Discharge on federally-held education loan(s) AND the disbursement date(s) of your Pathway student loan(s) is NOT after the effective date of your federal loan discharge.