No. of Recommendations: 2

"17. Loan Discharge – My loans will be discharged
if documentation of my death is submitted to my
lender. My loan(s) may also be discharged if a physician
certifies that I am totally and permanently disabled....
My loan will not automatically be discharged in
bankruptcy. In order to discharge a loan in bankruptcy,
I must prove undue hardship in an adversary
proceeding before the bankruptcy court.
In certain cases, the Act provides for loan discharge
for borrowers who are unable to complete a course
of study because the institution closes, or borrowers
whose loan eligibility was falsely certified by the
institution. The Act also provides for loan discharge
in the amount of any required refund that my school
failed to make to my lender on my behalf."

The quote above comes from the standard Master Promissory Note that Sallie Mae has students fill out for government-backed loans. Don't know about the language in PLUS loans.
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