The process where the government cancels whole or part of a student’s amount outstanding, subject to compliance with certain conditions, is called Loan Forgiveness. Educational sponsorship availed by you for the purpose of financing your education may be cancelled in whole or in part for several reasons. Cancellation of loan requires the following conditions to be satisfied.
- Your status was not confirmed by school authorities before the studies commenced
- Refund due was not received.
- The school is closed within 90 days from the date of enrollment without completing the study program
- Bad evaluation of your ability pertaining to the course
- Disability suffered by the borrower after the amount has been granted
- Forged signature
- Borrower’s untimely death
- Becoming bankrupt
Conditions for Loan Forgiveness /Cancellation
Students performing one or more of these activities are granted cancellation:
- Volunteering Work: These organizations offer cancellation programs
- Volunteers in Service to America (VISTA): No profit organization working for eradication poverty, homelessness and illiteracy offer forgiveness for a service of 1700 hrs and a stipend of $4,725.
- AmeriCorps: Volunteering service for 12month is offered $4,700 towards repayment.
- Peace Corps: Forgiveness is given for 2 years of service in more than 70 countries.