Did you realize that there are various programs available that will actually pay off all or part of your school loans? student loan forgiveness for disability isn’t a legend. Many of these programs aren’t broadly advertised and the vast majority who are qualified don’t even realize that they qualify to have thousands of dollars cleared off the balance of their educational loans.
The government will pay your Perkins loan in full in the event that you give full time services intended to aid disabled infants or little children who have physical, intellectual, communicative, social, emotional, or adaptive necessities. Qualified programs can operate from an in-home setting or outside facility giving the program conforms to the requirements of the Individuals with Disabilities Education Act. To learn more about this student loan forgiveness program, contact your loan supplier.
The Federal government and Education Department provide many opportunities to borrowers to eliminate their debt burdens. Such student aid programs help borrowers in public service or debtors who face unfair treatment from schools. Besides, discharge programs exist to forgive borrowers’ debts when their schools close or in case of disability and death. This guide focuses on student loan forgiveness for disability. The official name for the program is Total and Permanent Disability Discharge. The program is mainly available for federal borrowers. Only a few private lenders might provide this option to eliminate the debt concerns of private student loan borrowers.
You can find detailed information on the eligibility and application process in this guide. However, you can also contact our debt specialists to get more information and direct your questions.
1. What is Student Loan Forgiveness for Disability?
This debt discharge program aims to eliminate the debt of total and permanently disabled borrowers and help them get out of their debt burden. The official name of student loan forgiveness for disability is Total and Permanent Disability Discharge.
This program involves Direct, FFEL, and Perkins loans, which means most federal loans qualify for discharge. Meanwhile, only a few private student loan lenders provide this opportunity. Hence, private loan borrowers can have a hard time eliminating their debt due to disability.
As the student loan discharge is based on disability, it is necessary to prove such conditions to get the student loan forgiveness for disabled individuals. Once the borrower submits required documents, the Education Department reviews the application and decides if you qualify for the program.
The application process usually requires proof of disability and completion of the disability discharge application form. Depending on how you prove the disability, you might attach supporting documents or let your physician fill the designated section for disability proof within the application form.
2. How Do I Prove Disability?
student loan forgiveness for disability
As mentioned, one of the most essential eligibility conditions is proving that the borrower is totally and permanently disabled. There exist three ways of getting disability documents:
Through Veteran Affairs
Social Security Administration
and a Physician
Veteran Affairs provides documentation for disabled people. Specifically, this method is the best for student loan forgiveness for disabled veterans. The Veteran Affairs usually inform the Nelnet, the loan servicer for student loan forgiveness for disability, about the borrowers who qualify for the program.
However, if you do not get informed about your qualification, you can get a document from VA and fill the application form. You need to submit the VA documentation together with the application form that indicates you are total and permanently disabled. Keep in mind that the documentation should have an effective date on it.
In some cases, the borrower does not even need to apply for the forgiveness program. The VA informs the Nelnet, and then the loan servicer contacts the borrower that he/she qualifies for a forgiveness opportunity. The disability should be service-connected, 100% disabling that restricts the borrower from employment.
If you receive a letter that you qualify for student loan forgiveness for disability, you will notice a date on it. If you do not want the discharge option, you should inform the Nelnet by that date. Otherwise, Nelnet will inform your loan servicer to eliminate the student loan debt if you do not take any action. In such cases, there is no need to fill application forms except signing.
Social Security Administration
The requirements for Social Security Administration are similar, with a few differences. If you receive Social Security Disability Insurance or Supplemental Security Income, you can qualify for student loan forgiveness for disability. However, keep in mind that your next scheduled review should be 5-7 years from your last disability determination date.
Like Veteran Affairs documentation, Social Security Administration also informs Nelnet if a borrower qualifies to discharge the case. In such a case, you will be informed about qualification, and you will not need to submit the documentation proving the disability. However, you still need to apply for discharge, and Nelnet will explain how to continue applying for student loan elimination.
Again, if your qualification is not automatically determined, you can apply by yourself by submitting your SSA documentation for student loan forgiveness for disability.
Another way to prove the disability is through getting certification from a physician. The physician is defined as a doctor of medicine or osteopathy. The doctor should have a license to work in the U.S. Conditions are a little different for certification. A certificate should indicate that:
Disability can result in death
It lasted at least 60 months, or it will last at least 60 months
Disability restricts the borrower from gainful activity- employment
Each option has its requirements in the application process. We will explain them in the following sections.