You might be eligible for a discharge of your federal student loans based on false certification. 
Learn more about false certification discharge to see whether you might qualify. You might be eligible for a discharge of your loan made under the William D. Ford Federal Direct Loan Direct Loan Program or Federal Family Education Loan FFEL Program if your school falsely certified your eligibility to receive a loan. 

What are the eligibility requirements to qualify for a loan discharge based on false certification? 
There are three categories of false certification through which you might be eligible for a discharge of your Direct Loans or FFEL Program loans : Ability to benefit: The school falsely certified your eligibility to receive the loan based on your ability to benefit from its training , and you didn t meet the ability - to - benefit student eligibility requirements that were in effect at the time the school determined your eligibility. Disqualifying status: The school certified your eligibility to receive the loan , but at the time of the certification, you had a status physical or mental condition, age, criminal record, or other circumstance that disqualified you from meeting the legal requirements for employment in your state of residence in the occupation for which the program of study was preparing you. Unauthorized signature or unauthorized payment : The school signed your name on the loan application or promissory note without your authorization or the school endorsed your loan check or signed your authorization for electronic funds transfer without your knowledge , and the loan money wasn t given to you or applied to charges you owed to the school. 

How do I apply for a loan discharge? 
If you have a Direct Loan or FFEL Program loan and you re ready to apply for the false certification discharge , you must complete the loan discharge application that applies to your circumstance : Loan Discharge Application : False Certification Ability to Benefit 

user: My school filled out the paperwork for my school loans wrong. Do I still have to pay the loans back?


assistant: In the instance of a false certification, you may qualify for the discharge of your federal student loans. Would you like to learn more?

user: Actually, my mom and dad took out the loan to help me, but the paperwork is still wrong. Does that make a difference?

assistant: A PLUS loan taken out by a parent could still be discharged in the case of a false certification.

user: So it doesn't matter that my parents helped get the loan?

assistant: It won't matter whether it was you or your parents who actually took out the loan. If the school falsely represented the benefits you would get from studying there in order for you to take out the loan, it can be discharged.

user: Yes! They told me I would be able to use my credits to transfer to a bigger school after, but I found out when I tried to transfer that they weren't even accredited and my credits aren't worth anything!

assistant: Was there anything that would have made you ineligible to receive a loan at the time that it was issued?

user: I don't think so. My parents didn't say anything about that happening when they applied for the loan for me. 

assistant: Did you sign your name to any of the loan paperwork at the time the loan was obtained?