UNITED STATES DEPARTMENT OF EDUCATION

OFFICE OF POSTSECONDARY EDUCATION

Subpart G-- Waiver of Federal Student Loan Debts 

§ 30.80 Waiver of Federal student loan debts. 

The Secretary may waive all or part of any debts owed to the 

Department arising under the Federal Family Education Loan 

Program authorized under title IV, part B, of the HEA, the 

William D. Ford Federal Direct Loan Program authorized under 

title IV, part D, of the HEA, the Federal Perkins Loan Program 

authorized under title IV, part E, of the HEA, and the Health 

Education Assistance Loan Program authorized by sections 701–720 

of the Public Health Service Act, 42 U.S.C. 292–292o, under the 

conditions included in, but not limited to, §§ 30.81 through 

30.90. 
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§ 30.84 Waiver when a loan is eligible for forgiveness based 

upon repayment plan. The Secretary may waive the entire 

outstanding balance of a loan if the Secretary determines that a 

borrower is not enrolled in, but otherwise meets the eligibility 

requirements for forgiveness under— 

(a) An income-based repayment plan under § 682.215 or § 

685.221; 

(b) An income-contingent repayment plan under § 685.209; or 

(c) An alternative repayment plan under § 685.208(l). 
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§ 30.86 Waiver based upon Secretarial actions. (a) Subject to 

paragraph (b) of this section, the Secretary may waive the 

entire outstanding balance of a loan associated with attending 

an institution or a program at an institution if the Secretary 

or other authorized Department official has issued a final 

decision that terminated the institution or program’s 

participation in the title IV, HEA programs or denied the 

institution’s request for recertification, or the Secretary or 

other authorized Department official has otherwise determined 

that the institution or the program in which the student was 

enrolled is no longer eligible for its students to receive 

assistance under the title IV, HEA programs and that decision, 

denial, or determination was due, in whole or in part, to any of 

the following circumstances: 

(1) The program or institution has failed to meet an 

accountability standard based on student outcomes established 

under the HEA or its implementing regulations for determining 

eligibility for participation in the title IV, HEA programs. 

(2) The program or institution has failed to deliver sufficient 

financial value to students, including in situations where the 

institution or program has engaged in substantial 

misrepresentations, substantial omissions, misconduct affecting 

student eligibility, or other similar activities; this paragraph 

applies to circumstances when the institution or program has 

lost accreditation at least in part due to such activities. 

(b) The waiver described in paragraph (a) of this section is 

limited to loans that were borrowed to attend that program or 

institution during the period that corresponds with the findings 

or outcomes data that forms the basis for the action described 

in paragraph (a) of this section, unless the Secretary 

determines that the use of a different period is appropriate. 

(c) If the conditions for waiver in paragraph (a) of this 

section are met but the loan has been repaid by a Federal 

Consolidation Loan or Direct Consolidation Loan that has an 

outstanding balance, the Secretary may waive the portion of the 

outstanding balance of the consolidation loan attributable to 

such loan.
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§ 30.87 Waiver following a closure prior to Secretarial 

actions. (a) Subject to paragraph (b) of this section, the 

Secretary may waive the entire outstanding balance of a loan 

associated with attending a program or institution if the 

program or institution has closed and the Secretary or other 

authorized Department official has determined that— 

(1) Based on the most recent reliable data for that program or 

institution, the program or institution has not satisfied, for 

at least one year, an accountability standard based on student 

outcomes established under the HEA or its implementing 

regulations for determining eligibility for participation in the 

title IV, HEA programs; or 

(2) The program or institution- 

(i) Failed to deliver sufficient financial value to students 

including in situations where the institution or program has 

engaged in substantial misrepresentations, substantial 

omissions, misconduct affecting student eligibility, or other 

similar activities; this paragraph applies to circumstances when 

the institution or program has lost accreditation at least in 

part due to such activities; and

(ii) Is the subject of a program review, investigation, or any 

other Department action that remains unresolved at the time of 

closure and that is based, in whole or in part, on the conduct 

described in paragraph (a)(2)(i) of this section. 

(b) The waiver described in paragraph (a) of this section is 

limited to loans that were borrowed to attend that program or 

institution during the period that corresponds with the findings 

or outcomes data that forms the basis for the action described 

in paragraph (a) of this section, unless the Secretary 

determines that the use of a different period is appropriate. 

(c) If the conditions for waiver in paragraph (a) of this 

section are met but the loan has been repaid by a Federal 

Consolidation Loan or Direct Consolidation Loan that has an 

outstanding balance, the Secretary may waive the portion of the 

outstanding balance of the consolidation loan attributable to 

such loan. 
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§ 30.88 Waiver for closed Gainful Employment programs with high 

debt-to-earnings rates or low median earnings. 

(a) The Secretary may waive the outstanding balance of a loan 

received by a borrower associated with enrollment in a Gainful 

Employment (GE) program as described in 20 U.S.C. 

1002(b)(1)(A)(i) and (c)(1)(A) if-- 

(1) The program or institution closed; 

(2) The Secretary makes the determination that this was not a 

program that prepares students to become a doctor of medicine or 

osteopathy or a doctor of dental science; and 

(3) For the period in which the borrower received loans for 

enrollment in the program, the Secretary has reliable and 

available data demonstrating that, for students who received 

title IV, HEA assistance- 

(i)(A) The median annual loan payment of graduates from the 

program is greater than 20 percent of the median annual earnings 

for graduates, minus 150 percent of the applicable Federal 

Poverty Guideline for the year being measured or the denominator 

of such calculation is zero or negative; and 

(B) The median annual loan payment of graduates from the 

program is greater than 8 percent of the median annual earnings 

for graduates of the program or the denominator of such 

calculation is zero; or 

(ii) The median annual earnings of graduates from the program 

are equal to or less than the median annual earnings for working 

adults aged 25–34, who either worked during the year or 

indicated they were unemployed (i.e., not employed but looking 

for and available to work) when interviewed, with only a high 

school diploma (or recognized equivalent)— 

(A) In the State in which the institution is located; or 

(B) Nationally, if fewer than 50 percent of the students in the 

program are from the State where the institution is located, or 

if the institution is a foreign institution. 

(b) In determining whether a program meets the requirements 

under paragraph (a) of this section, the Secretary- 
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(1) Identifies a program using the program’s six-digit CIP code 

as assigned by the institution or determined by the Secretary, 

in combination with the institution’s six-digit Office of 

Postsecondary Education ID (OPEID) number and the program’s 

credential level, unless the Secretary does not have reliable 

and available data at the six digit-level, in which case the 

Secretary will use the four-digit CIP code;

(2) Calculates the annual loan payment based upon the average 

of-

(i) The interest rate on Direct Unsubsidized Loans for 

undergraduate students for the three consecutive award years

ending in the latest completion year for the students whose 

median debt payment is being calculated for graduates of

undergraduate certificate programs, post-baccalaureate 

certificate programs, and associate degree programs; or

(ii) The interest rate on Direct Unsubsidized Loans for 

graduate students for the three consecutive award years ending 

in the latest completion year for the students whose median debt 

payment is being calculated for graduates of graduate 

certificate programs and master's degree programs; or

(iii) The interest rate on Direct Unsubsidized Loans for 

undergraduate students for the six consecutive award years

ending in the latest completion year for the students whose 

median debt payment is being calculated for graduates of 

bachelor’s degree programs; or

(iv) The interest rate on Direct Unsubsidized Loans for 

graduate students for the six consecutive award years ending in 

the latest completion year for the students whose median debt 

payment is being calculated for graduates of doctoral programs 

and first professional degree programs; and 

(3) Calculates the median annual earnings of program graduates 

by considering earnings in the third year subsequent to 

graduation.

(c) The Secretary may also apply the waiver described in 

paragraph (a) of this section for loans received for enrollment 

in a GE program at an institution--

(1) If the institution has since closed; 
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(2) Prior to the closure, the institution received a majority 

of its title IV, HEA funds from programs that met the conditions 

described in paragraph (a)(3) of this section; and

(3) The Secretary did not have data to evaluate the program’s 

performance as described in paragraph (a)(3) of this section.

(d) If the conditions for waiver in paragraph (a) or (c) of this 

section are met but the loan has been repaid by a Federal 

Consolidation Loan or Direct Consolidation Loan that has an 

outstanding balance, the Secretary may waive the portion of the 

outstanding balance of the consolidation loan attributable to 

such loan.
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* * * * * 

§ 682.403 Waiver of FFEL Program loan debt. 

(b) Determination of qualification for a waiver by the 

Secretary. The Secretary may waive the borrower’s obligation to 

repay up to the entire outstanding balance on an FFEL Program 

loan if the loan qualifies for a waiver under one of the 

following conditions: 

(2) Closed school discharge. The Secretary may waive the 

borrower’s obligation to repay up to the entire outstanding 

balance of a loan where the Secretary determines that a borrower 

has not applied or not successfully applied for, but otherwise 

meets the eligibility requirements for, a closed school 

discharge on that loan under § 682.402(d). 

(3) Cohort default rate. For loans received for attendance at 

an institution that lost its eligibility to participate in any 

title IV, HEA program because of its cohort default rate, as 

defined in 20 U.S.C. 1085(m), the Secretary may waive the 

outstanding balance of the loan, provided that the borrower was 

included in the cohort whose debt was used to calculate the 

cohort default rate or rates that were the basis for the loss of 

eligibility.