Forgiveness of student loans due to disability is a common topic in the media these days. It’s not surprising, as more and more people are struggling with their student debt. But what exactly is forgiveness of student loans due to disability? How does it work? Who qualifies?
In this blog post, we’ll walk through what forgiveness of student loans due to disability means and how you can apply for it if you qualify.
Forgiveness Of Student Loans Due To Disability
If you’re totally and permanently disabled, you may qualify for a discharge of your federal student loans and/or Teacher Education Assistance for College and Higher Education (TEACH) Grant service obligation.
A total and permanent disability (TPD) discharge relieves you from having to repay a William D. Ford Federal Direct Loan (Direct Loan) Program loan, a Federal Family Education Loan (FFEL) Program loan, and/or a Federal Perkins Loan or to complete a TEACH Grant service obligation.
In most cases, to qualify for a TPD discharge, you must complete and submit a TPD discharge application, along with documentation showing that you meet our requirements for being considered totally and permanently disabled, to Nelnet, the servicer that assists ED with the TPD discharge process.
Note: Throughout this page, the words “we,” “our,” and “us” refer to the U.S. Department of Education.
How do I show that I qualify for a TPD discharge?
You can show that you qualify for a TPD discharge by providing documentation from one of three sources:
- the U.S. Department of Veterans Affairs (VA)
- the Social Security Administration (SSA)
- a physician
There are specific requirements for each type of supporting documentation that you can submit to show your eligibility.
VA Documentation
If you’re a veteran, you can qualify for a TPD discharge by providing documentation from VA that shows you have received a VA disability determination because you (1) have a service-connected disability that is 100% disabling, or (2) are totally disabled based on an individual unemployability rating.
SSA Documentation
If you’re eligible for Social Security Disability Insurance or Supplemental Security Income, you can qualify for a TPD discharge if you provide a copy of your SSA notice of award or Benefits Planning Query showing that your next scheduled disability review will be five to seven years or more from the date of your last SSA disability determination.
can a parent plus loan be forgiven due to disability
Your Parent PLUS Loan may be discharged if you die, if you (not the student for whom you borrowed) become totally and permanently disabled, or, in rare cases, if you file for bankruptcy. Your Parent PLUS Loan may also be discharged if the child for whom you borrowed dies.
In addition, all or a portion of a Parent PLUS Loan may be discharged in any of these circumstances:
- The child for whom you borrowed could not complete his or her program because the school closed.
- Your eligibility to receive the loan was falsely certified by the school.
- Your eligibility to receive the loan was falsely certified through identity theft.
- The child for whom you borrowed withdrew from school, but the school didn’t pay a refund of your loan money that it was required to pay under applicable laws and regulations.
Parent PLUS loans are a popular option for those sending their kids off to college. These federal loans, which are offered to parents of undergraduate students, can make college more affordable in the short term.
Parent PLUS loans come with higher interest rates and fees than federal loans that undergraduates can take out on their own, and they have fewer repayment options. But they’re eligible for many of the same forgiveness programs as other federal loan types.
For example, parent PLUS loans qualify for forgiveness if you choose a certain federal repayment plan, if you work in certain jobs or if you’re permanently disabled. Here are the ways that you may be able to receive forgiveness as a parent PLUS loan borrower.