Definitions for "Loan Forgiveness"
cancellation of all or part of an education loan by the federal government because the borrower meets certain criteria (for example , he or she is performing military or volunteer service).
Cancellation of student loan debt.
A student's loan debt can be "forgiven" (or written off) by the Federal Government under certain circumstances. These circumstances include: the borrower's school closes while he/she is attending, the borrower becomes permanently disabled, or the borrower becomes deceased. Documentation of the situation is required and eligibility is determined by the guarantor. Back to glossary main page