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| | Loan Cancellation Discharge |
 | | If your loan is discharged, you will not owe any more payments on the loan, and you will get a refund of payments you have made in the past. |
 | | Also, if the loan is discharged, the servicing agency will tell credit reporting agencies that the loan was discharged, and any adverse credit history resulting from nonpayment of the discharged loan will be deleted. |
 | | Previously, student loan and grant liabilities could only be canceled (discharged) due to bankruptcy under certain conditions which, in general, depended on the amount of time between the date on which a loan or grant liability has been due or the date that the bankruptcy was filed, as well as undue hardship. |
| www.ed.gov /offices/OSFAP/DCS/loan.cancellation.discharge.html (1370 words) |
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