Federal debt can be forgiven in certain circumstances under different categories of forgiveness, discharge and cancellation that include permanent disability (TPD) discharge, death discharge, discharge in bankruptcy, false certification of student eligibility or unauthorized payment discharge, unpaid refund discharge, teacher loan forgiveness, public service loan forgiveness and Perkins loan cancellation and discharge, according to Federal Student Aid. Direct loans, federal family education loan (FFEL) program loans and Perkins loans are all the types of loans that may be dismissed under their appropriate forgiveness categories. Borrowers must contact their loan servicers, or have attended schools for Perkins loans recipients, to see if they qualify.
In order to qualify for total and permanent disability discharge, a borrower must be a veteran that has been deemed by the VA to be unemployable due to a service-related disability, a person receiving Social Security Disability Insurance or Supplemental Security Income or have certification from a doctor declaring total and permanent disability, reports Federal Student Aid.
In the event that a borrower dies, his federal student loans are eligible for forgiveness. A copy of the death certificate must be provided to the borrower's loan servicer or to the education institution for Perkins loans to process the loan forgiveness.