False Certification Discharge

False Certification Discharge

Schools have a responsibility to make sure borrowers can benefit from education when the borrower doesn’t have a high school diploma or G.E.D..  That’s usually done by giving an exam called an “ability to benefit” exam.  Borrowers who got a Direct Loan or a Federal Family Education Loan (FFEL) Program Loan on or after January 1, 1986, may qualify for a False Certification discharge if his or her ability to benefit was falsely certified by the school.