As of August, approximately $9 billion in debt has been discharged for about 425,000 federal student loan borrowers with a total and permanent disability. If you or someone you know has a total and permanent disability, you may be wondering:
- How do people qualify for the discharge of their federal student loans?
- What type of loans are dischargeable?
- What is the three-year discharge monitoring period?
- How do I apply for total and permanent disability discharge?
If you or someone you know is disabled and may be eligible for a disability discharge, contact Law Office of Simon Goldenberg, PLLC. To schedule a consultation where an experienced attorney will review the facts of your situation and determine whether you are eligible for discharge, contact us at 888-301-0584 or online.
How Do People Qualify For The Discharge Of Their Federal Student Loans?
To qualify for a total and permanent disability discharge, you must complete and submit a total and permanent disability discharge application along with documentation showing that you meet the disability requirements. To prove a disability, you must provide documentation showing a total and permanent disability from one of the following sources:
- The United States Department of Veterans Affairs
- The Social Security Administration
- A Physician
The requirements for the above documentation can be submitted to show eligibility.
United States Department Of Veterans Affairs
As a veteran, you can qualify for a total and permanent disability discharge by providing documentation that shows you received a veteran disability determination because you (1) have a service-connected disability or (2) are totally disabled based on the individual unemployability rating.
Social Security Administration
To qualify for a total and permanent disability discharge, you can provide a copy of your social security administration notice of award or benefits planning query. The benefits planning query must show that the next scheduled disability review will be five to seven years or more from the date of the last disability determination.
Physician Certification
To qualify for a total and permanent disability discharge through a physician certification, you merely need the physician to certify that you are unable to engage in any substantial gainful activity due to a physical or mental impairment that:
- Lasted for a continuous period of at least 60 months,
- It is likely to result in death, or
- It can be expected to last for a continuous period of at least 60 months.
The physician who certifies the application must be an M.D. or a D.O. licensed to practice medicine in the United States.
Substantial Gainful Activity
Unable to engage in any substantial gainful activity means that the disabled individual cannot perform the level of work required to receive payment.
What Type Of Loans Are Dischargeable?
All Direct Loan Program, FEEL Program, Federal Perkins Loans, and TEACH Grant service obligation loans may be discharged under a total and permanent disability discharge.
What Is The Three-Year Monitoring Period?
For three years after the date the discharge is approved, the obligation to repay your discharged federal student loans may be reinstated if the following occur:
- Have annual employment earnings that exceed the Poverty Guideline amount for a family of two in your state, regardless of family size;
- You receive a new Direct Loan, Perkins Loan, or TEACH Grant;
- Disbursement of a Direct Loan, Perkins Loan, or TEACH Grant that you received before the discharge date is made, AND you do no ensure the return of the full amount of the disbursement within 120 days of the disbursement date.
You receive a notice from the social security administration that you are no longer totally and permanently disabled.
If you receive notification of one of the above, you must promptly notify the Department of Education.
How Do I Apply For Total And Permanent Disability Discharge?
To apply for a total and permanent disability discharge, you must complete an application and send it to the discharge servicer, Nelnet. Nelnet assists the Department of Education in administering the total and permanent disability discharge process and communicates with borrowers.
To apply for discharge, you can visit disabilitydischarge.com and select the "Application Process."
Hiring An Attorney To Help With Disability Discharge
If you or someone you know is disabled and believe they should receive a disability discharge, contact an experienced attorney at Law Office of Simon Goldenberg, PLLC. The attorneys are very experienced in consumer debt discharge and will be able to guide you in obtaining the documentation required to discharge your federal student loans. To contact us, call us at 888-301-0584 or online.