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How to Discharge Your Federal Student Loan If Your School Lied to You

Competition for students can become very intense for schools as they seek to increase enrollment and the corresponding profits.  Some of them can be very unscrupulous in their efforts to do so and to facilitate financial aid in order to allow the potential student to afford the cost of attendance.  In short, sometimes they lie.

If this happened to you, but you got your education (and more importantly a job) anyway, then things may be fine.  But what if that lie resulted in your getting a useless degree or certification?  Or what if you find out that the loans were issued despite the fact that you never applied for them?

So What Can I Do?

If this sounds like you, there may be a solution. The U.S. Department of Education grants an administrative discharge of a student loan where a "false certification" has taken place. This is most often in situations where the school:

  • Certified a loan for a loan borrower who never graduated from high school or obtained a GED
  • Never gave the borrower an entrance exam or he/she was given an exam but failed (or the results were falsified or fixed)
  • Enrolled a student that was unable to meet the state minimum employment requirements for the job for which the program is intended (e.g. enrolling a blind student in a CDL course
  • Forged or altered a loan note or a check endorsement
  • Committed identity theft or was the victim of it by a third party

This also does not mean that there was a false certification merely because you cannot get a job once you graduate from the program. But if the deck was stacked against you from the beginning, you need to take action.

Find Out More

If you live in southern New Jersey and would like to consult with me on your loans, please feel free to call my office at 856-432-4113 or contact me through this site to schedule an appointment in my Woodbury office to discuss your case.

If you would like more information about student loans, you can dowload my free book, I Graduated; Now What? A Guide to Dealing with Your Student Loans.

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