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UNIT 6
APPLICATION AND ETHICS
FEDERAL STUDENT LOANS—
DEFAULT AND DISCHARGE
ANSWERS TO THE QUESTIONS
AT THE END OF THE FEATURE
ETHICS QUESTION
In addition to the borrowers listed in this feature, who deserves to have their federal
student loans forgiven? Why? The occupations of borrowers who can have their student
loans forgiven, cancelled, or discharged include teaching, military service, nursing and other
CRITICAL THINKING
What are the consequences in addition to those stated in this feature of failing to make
timely payments on federal student loans? Discuss. The feature notes that one of the
consequences for failing to make a timely payment on a federal student loan can be a
2 UNIT SIX: CREDITORS’ RIGHTS AND BANKRUPTCY
determination of default. If a borrower defaults on a federal student loan, the entire balance of