3 Pathways to loan forgiveness through disability discharge

If you’re living with a serious disability, the last thing on your mind is your student debts. However, this can be an opportunity to discharge your debt and relieve financial stresses.

I was a bit surprised at how common I’ve found cases of this myself, as I’ve worked with my clients on two such cases of TPD loan forgiveness this year. For those that don’t know, TPD stands for Total and Permanent Disability, and it’s forgiveness program for those that have a serious health condition that prevents them from working.

It’s an unfortunate pattern, but as more and more parents are saddled with large loan balances from their children, and they continue to age, an increasingly higher amount of these borrowers are exposed to injuries or illnesses that impact their ability to work and effectively make payments. Fortunately, a Total and Permanent Disability Discharge offers a pathway to financial relief and piece of mind.

Here's how you may qualify:

1. Social Security Disability Insurance (SSDI) Documentation

• If you're receiving Social Security Disability Insurance (SSDI) and have a disability review scheduled at least 5–7 years from your last SSA disability determination, you may qualify automatically.
• Discharge process - The Department of Education periodically matches SSA records with loan borrowers and may discharge loans automatically if you qualify. Otherwise, submission off the TPD Discharge Application.

2. Veterans Affairs (VA) Determination

• If the VA has determined that you are unemployable due to a service-connected disability (either totally and permanently disabled or 100% disabled), you are eligible for TPD discharge.
• Discharge Process - Veterans can apply directly using the TPD Discharge Application or be matched automatically in some cases.

3. Physician Certification

• If a licensed physician certifies that you are unable to engage in substantial gainful activity due to a physical or mental impairment that:
  1. Has lasted for at least 60 continuous months,
  2. Is expected to last for at least 60 continuous months, or
  3. Is expected to result in death
• Discharge Process – Completion of the TPD Discharge Application including a signed doctors note.

Have questions on how a disability may impact your student loans? CLICK HERE to book a time to chat.

All the best,

Andrew Holmes, Certified College Planning Specialist™

Andrew@PlanWithFPS.com

617-630-4978

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