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Loan Forgiveness

Student's total and permanent disability PDF
The MI-LOAN Program provides for cancellation of the remaining outstanding balance on a loan due to a student’s total and permanent disability.  Total and permanent disability is defined as the student’s inability to work and earn money (other than disability payments) or go to school because of an injury or illness that is expected to continue indefinitely or result in death.  The student’s total and permanent disability cannot be based on a condition that existed before the borrower applied for the loan unless the condition has since substantially deteriorated so as to render the student totally and permanently disabled. The student’s condition must be certified on the proper MI-LOAN Program form by a physician of medicine or osteopathy, legally authorized to practice.

Non-student’s total and permanent disability PDF

This disability description has been expanded to apply the same criteria for the non-student borrower or cosigner.  Once the MI-LOAN Program has been advised of the non-student’s disability, received supporting documentation from the his/her physician, and MI-LOAN Program staff determines this individual meets the total and permanent disability criteria as stated above, future collection actions on that individual will be suppressed.

Death of the student PDF
Upon receipt of a Death Certificate for the student, or other document deemed as acceptable by the MI-LOAN Program, the remaining outstanding balance on the loan will be forgiven.  Submit to the MI-LOAN Program with a note providing the borrower’s name and any other information you deem appropriate; there is no form.

Note: The remaining loan balance is not canceled based on:

  • The borrower’s disability or death when the borrower is not the student and there is at least one cosigner. 
  • The cosigner’s disability or death.

Collection action for these individuals will be cancelled upon receipt of a Death Certificate or other document deemed as acceptable by the MI-LOAN Program.

For assistance call 888-643-7521 or e-mail

All borrower options and benefits are subject to change.