If you withdrew from school and the school didn t make a required return of loan funds to the loan servicer, you might be eligible for a discharge of your federal student loans. 
Learn more about the unpaid refund discharge to see whether you might qualify. If you withdrew from school after receiving a loan made under the William D. Ford Federal Direct Loan Direct Loan Program or Federal Family Education Loan FFEL Program , the school may have been required under federal regulations to return some or all of the loan money to your loan servicer. If the school didn t make a required return of the loan funds after you withdrew , you might be eligible for a discharge of the portion of your loan that the school failed to return. 

How do I apply for unpaid refund discharge? 
If the school that you attended is still open , you should contact that school and attempt to resolve the issue with the school before applying for an unpaid refund discharge. If the school that you attended has closed , you should first determine if you may be eligible for a closed school discharge instead. Contact your loan servicer for more information. Find out who your loan servicer is by logging in to My Federal Student Aid. If you re ready to apply for the unpaid refund discharge , you must complete the Loan Discharge Application: Unpaid Refund and send the completed form to your loan servicer. 

How much of my loan will be discharged if I m approved for a loan discharge? 
Only the portion of your loan that your school should have returned will be discharged. Contact your loan servicer for more information. 

I m a parent who received a Direct PLUS Loan to help pay for my child s education. Can my loan be discharged due to unpaid refund? 
Yes , if your child withdrew from school but the school didn t make a required return of your parent PLUS loan funds , the amount of the loan that the school should have returned will be discharged. Contact your loan servicer for more information. 

user: Is it possible to be eligible for a discharge if my loan servicer did not make the required return of loan funds to the loan servicer when I withdrew from school?

assistant: Yes, you can learn more about the unpaid refund discharge to see if you qualify or not.

assistant: Did you withdraw from school after receiving a loan made under the William D. Ford Federal Direct Loan Program or Federal Family Education Loan?

user: Yes, I withdrew after receiving the William D. Ford Federal Direct Loan Program loan.

assistant: Then the school would have been required under federal regulations to return some or all of the loan money to your loan servicer.

user: Will the discharge be for the whole amount?

assistant: The discharge would be for the portion of the loan that the school did not return.

user: How do I apply for an unpaid refund dischargeif the school is still open?

assistant: You should be able to contact the school and attempt to resolve the problem with them before applying for an unpaid refund.

user: What if I am parent who received a Direct PLUS Loan to help pay for my child's education, will my loan be discharged due to unpaid refund?

assistant: Actually, yes, the amount the school should have returned will be discharged.

user: What will happen if my child withdrew from school but the school never made a return of the parent PLUS loan funds?

assistant: You will get the amount of the loan the school should have returned discharged.