Disability Discharge of Federal Student Loans

If you become disabled at any time in your life and are unable to work, you may be eligible for a total and permanent disability discharge. This discharge relieves you from having to repay certain federal loans. 

Types of Loans Eligible:
1. William D. Ford Federal Direct Loan Program (Direct Loans)
2. Federal family Education Loan Program (FFEL Loans)
3. Federal Perkins Loan Program (Perkins Loans) and
4. TEACH Grant Service Obligation (TEACH Grants).

How to Qualify:
To qualify for a total and permanent disability discharge, you must complete an application with the Department of Education. To prove that you are totally and permanently disabled, you must provide one of the following with your application:

1. If you are a veteran, you may attach documentation from the VA that the VA has determined you are unemployable due to a service related disability.

2. If you are receiving Social Security Disability (SSD) or Supplemental Security Income (SSI) benefits, you may attach a copy of the notice of award letter from Social Security stating that your next scheduled disability review will be within 5 to 7 years from the date of your most recent Social Security determination.

3. You may submit certification from your doctor that you are totally and permanently disabled. Your doctor must certify that you are unable to engage in any substantial gainful employment due to a medically determinable physical or mental impariment that can result in death, that has lasted for at least 60 months or that can be expected to last at least 60 months.

To Apply:
You may apply by phone at 888-303-7818 or online at www.disabilitydischarge.com. The Department of Education will contact your loan holders and instruct them to suspend collection efforts for 120 days to give you enough time to complete your application for total and permanent disability discharge. 

Approval/Denial:
If the Department of Education approves your request, it will isntruct your loan holders to discharge your loans. It will also instruct the loan holders to return any payments you made on your loans after your disability date. Be advised that any discharged loans over $600 may be considered income on your federal and state tax returns for the year that they are discharged. You should consult your tax professional about discharged loans. If the Department of Education denies your request, you will be notified via mail and the Department will instruct the loan holders to resume collection efforts on your loans.