If a borrower withdraws from school before 60% of the term is complete but the school does not appropriately pay any refund owed to the U.S. Department of Education (ED) or other lender, he or she may be eligible for an unpaid refund discharge. Only the amount of the unpaid refund will be discharged.
False loan certification discharge options are only for loans received on or after January 1, 1986. Direct Loans and FFEL Program loans are eligible for unpaid refund discharges.