Skip to main content

Student loan forgiveness

Costa Mesa, CA |

I have schizophrenia.. I really want to go back to school... If I did I would be taking out a student loan for the reason that there is a chance I get worse and or relapse into psychosis... My parents have the money to pay all my tuition. But I would rather not have them potentially blow that money only for me to do nothing with my degree.

1. Are student loans forgivable if an individual can't work anymore due to an illness?
2. If I do make enough money after school and continue to pay tuition. Could my parents pay it? And if so, would they have to pay more taxes and fees if they otherwise payed my tuition up front without me taking out a loan?

+ Read More

Attorney answers 2


1. Student loans can be deferred, forgiven or discharged in bankruptcy under very narrow circumstances, among them, proof that there is no way the debtor can ever repay the loan in the future.

2. If you do make money and pay tuition, then your parents can give you up to $14k a year without paying a gift tax, though they have the right to pay tuition for you, regardless, but they may not be allowed to deduct it from their taxes, or maybe they could if you are still considered a dependent.

I am not sure if they would pay more taxes or fees. That is something that a tax preparer and tax lawyer could answer depending on their financial circumstances which is beyond this forum.

This is a public forum. Any questions or answers published here should not be construed as the giving or receiving of legal advice or the formation of any attorney-client relationship. You should consult with a competent attorney in the jurisdiction where your legal issues are pending and get good, solid legal advice. This being a public forum, those answers you do read are merely given for informational purposes only.


If a pre-existing condition deteriorated after the loan guaranty date, the loan may be discharged under a disability discharge.

If you make enough money after school, your parents can pay off the balance that is due as of the date of payoff, including accrued fees and interest.

I'm a lawyer admitted in California and New York with offices in Pasadena (CA) and New York City. I'm not your lawyer unless we enter into a written agreement. For questions about this or anything else, call 866.787.8078.

Can't find what you're looking for?

Post a free question on our public forum.

Ask a Question

- or -

Search for lawyers by reviews and ratings.

Find a Lawyer