Student Loan Disability Discharge: Debt Forgiveness When You’re Disabled
Over 44 million Americans are struggling with student loan debt, and chances are you either know or are one of them. If you are a college graduate, you hope your degree pays off in the form of income. But, what happens if you become disabled and can no longer work? How will you pay off your student loans? The good news is, you may be eligible for student loan disability discharge.
Total and Permanent Disability Discharge (TPD)
You can submit a Notice of Award (NOA) to the U.S. Department of Education if you are receiving Social Security Disability Insurance (SSDI), which will be accepted provided that the NOA states that you will receive a Continuing Disability Review (CDR) once every five to seven years. The CDR is used to determine whether or not you are still eligible as a disabled person.
If you can provide documentation from the U.S. Department of Veterans Affairs (VA) stating that you are unable to work due to a service-related disability, you may be eligible for TPD.
How to Apply for Disability Discharge
If you are a recipient of SSDI, you will need to provide your NOA, which you can request from the Social Security Administration (SSA). You can fill out and submit an application for TPD HERE. After you have submitted your application, the Department of Education will review it. If you are approved, you will have to take part in a three-year review period, unless you have a VA disability.
Things to Consider
While Total and Permanent Disability Discharge is a good option to consider if you are disabled and in need of loan forgiveness, it may not be the best choice for everyone.
Federal loan discharges are considered taxable income and must be reported to the IRS. This is an important factor to consider if you are not sure whether you can pay the income tax.
TPD can also only be used for federal loans. If you took out student loans from a private lender, you may be out of luck. Only a few private loan providers will discharge your debt if you are permanently disabled.
Contact Eric Brown of Jones Brown Law
If you think you are eligible for student loan disability discharge or are not sure if you should apply for TPD, attorney Eric Brown can assist you. Eric is an attorney based in Tulsa, Oklahoma, and has a robust Social Security Disability practice where he has represented clients in nearly one hundred Social Security hearings since he began practicing Social Security law. If you are in need of an experienced Social Security lawyer, contact Eric Brown HERE.