If you fortunate to qualify for a total discharge of your loan, you may be pleased to learn that you will no longer be responsible to make loan payments. However depending on the particular type of loan discharge program for which you may qualify for, the U.S. Department of Education may possibly be required to issue you a refund for all or part of the payments you made on such loan until that point. In addition, you may be fortunate to have any derogatory credit record notation related to a default to be deleted. In addition no wage garnishment or tax refund offset will take place to proceed with the collection on the discharged loan. If the loan was in a default status, the discharge may possibly erase such default status. If at that point in time you do not have any other defaulted loans, you may then possibly regain the chance to qualify for federal student aid once again.
Please remember: Under certain circumstances, your school may possibly be required to issue a refund for a portion of a FFEL Program loan or a Direct Loan to the U.S. Department of Education. (for instance, if you left school within a timeframe that may have required a refund of the loan funds. If your school fails to issue that particular refund, ten that part of your loan will be canceled, however you will still be held liable for paying any remaining balance.