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Discharge Programs

Your federal education loan debt may qualify for loan discharge if the loan was issued under certain conditions. The following loan discharges are available for AES-guaranteed educational loans:

If your lender discharges your loan debt, you will not owe any more payments on the loan and you will get a refund for the payments you have made. Also, the lender will inform credit-reporting agencies about the discharged loan and tell them to delete any adverse credit history resulting from nonpayment. You may be eligible to apply for future federal student financial aid.

If you have questions about the loan discharge process, please email us. We will research your inquiry and respond within 10 business days.

Please note: Email is not a secure method of communication because it may be intercepted by third parties. Please do not include any sensitive or private information in your email correspondence directed to AES.

Closed School Loan Discharge

What Is It?

Your lender may discharge your federal student loan debt if your school closed while you were enrolled and you could not complete the program of study for which the loan was intended. You must have been on an approved leave of absence or attending school within 120 days of the closure date.

How to Apply

Download and print the School Closure Loan Discharge Application (PDF) or contact AES.

How to Obtain Academic and Financial Aid Records

If you are trying to locate your academic and financial aid records from a closed school, contact the state licensing agency in the state in which the school was located to ask whether the state made arrangements to store the records. Academic and financial aid records may be useful to substantiate your claim for a loan discharge. You may need your academic records if you plan to attend another school and wish to have your course work at the closed school taken into consideration.

To obtain the telephone number of the state licensing agency in the state in which your school was located, contact AES at (717) 720-2676 or view a list of state licensing agencies (PDF).

Additional Information

Your loan cannot be discharged if:

  • You completed the program of study through a teach-out or by transferring academic credits or hours earned from the closed school to another school.
  • Personal circumstances caused you to withdraw more than 120 days before the school closed.
  • You are completing a comparable educational program at another school. (If you do this after your loan is discharged, you may have to pay back the amount of the discharge.)
  • You completed all of the course work for the program, even if you did not receive a diploma or certificate.

To find the official school closure date of your school, contact AES at (717) 720-2676 or go to the FSA Closed School Monthly Report Page.

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False Certification of Ability to Benefit Loan Discharge

What Is It?

You may qualify for loan discharge if the school that you attended falsely certified your ability to benefit from the education. To let a student borrow a federal loan, a school must certify that students who lack a high school diploma or GED can benefit from the training the school offers.

False certification of a student's eligibility occurs, for example, if the school failed to test your ability to benefit or conducted testing in an improper manner or if, at the time of enrollment, you had a physical condition, mental condition, or legal concern that would legally bar employment in your field of study.

How to Apply

Download and print the False Certification of Ability to Benefit Loan Discharge Application (PDF) or contact AES.

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False Certification (Disqualifying Status) Loan Discharge

What Is It?

You may qualify for loan discharge if the school certified your eligibility; but, because of a physical or mental condition, age, criminal record, or other reason you are disqualified from employment in the occupation in which you were being trained.

How to Apply

Download and print the False Certification (Disqualifying Status) Loan Discharge Application (PDF) or contact AES.

How to Obtain Academic and Financial Aid Records

If you are trying to locate your academic and financial aid records from a closed school, contact the state licensing agency in the state in which the school was located to ask whether the state made arrangements to store the records. Academic and financial aid records may be useful to substantiate your claim for a loan discharge. You may need your academic records if you plan to attend another school and wish to have your course work at the closed school taken into consideration.

To obtain the telephone number of the state licensing agency in the state in which your school was located, contact AES at (717) 720-2676 or view a list of state licensing agencies (PDF).

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False Certification (Unauthorized Signature/Unauthorized Payment) Loan Discharge

What Is It?

You may qualify for loan discharge if the school signed your name on the loan application or promissory note without your authorization and you did not attend class.

How to Apply

Download and print the False Certification (Unauthorized Signature/Unauthorized Payment) Loan Discharge Application (PDF) or contact AES.

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False Certification as a Result of Identity Theft Loan Discharge

What Is It?

You may qualify for loan discharge if your loan was falsely certified as a result of identity theft.

How to Apply

There is currently no federal application for this type of loan discharge. You should contact our Loan Discharge Unit at LoanDischarge@aesSuccess.org to discuss your situation. You will need to present evidence that identity theft occurred.

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Unpaid Refund Loan Discharge

What Is It?

You may qualify for a partial unpaid refund loan discharge if your school failed to pay a tuition refund required under federal law if you withdrew during the refund period published by the school. Only the amount of the unpaid refund will be discharged. You may qualify for this refund whether the school is closed or opened.

How to Apply

Download and print the Unpaid Refund Loan Discharge Application (PDF) or contact AES.

How to Obtain Academic and Financial Aid Records

If you are trying to locate your academic and financial aid records from a closed school, contact the state licensing agency in the state in which the school was located to ask whether the state made arrangements to store the records. Academic and financial aid records may be useful to substantiate your claim for a loan discharge. You may need your academic records if you plan to attend another school and wish to have your course work at the closed school taken into consideration.

To obtain the telephone number of the state licensing agency in the state in which your school was located, contact AES at (717) 720-2676 or view a list of state licensing agencies (PDF).

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Spouses and Parents of September 11, 2001 Victims Loan Discharge

What Is It?

You may be able to have your federal student loan debt discharged if you are the spouse or parent of an eligible public servant or other eligible victim of the September 11, 2001, terrorist attacks who died or became permanently and totally disabled. The U.S. Department of Education deems these loans eligible for discharge:

  • Federal Family Education Loan Program (FFELP)
  • Federal Perkins Loan Program
  • William D. Ford Federal Direct Loan Program

How to Apply

There is currently no federal application for requesting this discharge

Contact us to discuss your situation. You will need to present evidence in order to be considered for this discharge program.

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