There is a little-known discharge (cancellation) option for federal student loan borrowers who are victims, or relatives of victims, of the September 11th terrorist attacks. This is a remarkable discharge in that it is the only discharge option available to borrowers because of a single historical event. (There is a natural disaster-based forbearance option for federal student loan borrowers, but that just postpones your payments, as opposed to canceling the entire loan balance.) Moreover, very few people know about this discharge option.

Here’s how it works:

You must be either a direct victim or first responder of the September 11th terrorist attacks, or be a spouse or parent of a victim. Eligible loans include Perkins loans, FFEL loans, and Direct Loans, including Parent PLUS loans. The loan balance must have been owed on September 11, 2001 (meaning the discharge won’t apply to, for instance, a relative of a victim who obtained a federal loan sometime in 2002).

If you know of anyone who might be eligible, spread the word, as this is probably the least-known discharge option for federal student loan borrowers.