Terms, conditions and steps for a cancellation:

• If a Stafford borrower dies or becomes totally and permanently disabled, the guarantor will pay off the loans, and the holder of the loan will not collect from the borrower or the borrower's estate.
• Totally and permanently disabled means that the individual is unable to work and earn money because of a serious injury or illness that is expected to continue indefinitely or result in death.
• If you are notified of a student's death or total and permanent disability, obtain an original or certified copy of the death certificate or a physician's certification of total and permanent disability and proceed with loan cancellation.
• If the loan is discharged in bankruptcy, the holder of the loan will not collect. In most cases, however, federal education loans may not be discharged through bankruptcy.