Student Loan Disability Discharge: What Borrowers Should Know

Borrowers who are unable to work because of a significant disability may have federal student loan relief options that they aren't aware of.

One of those programs is Total and Permanent Disability Discharge, commonly referred to as TPD discharge.

For borrowers who meet the requirements, TPD discharge can eliminate the obligation to repay eligible federal student loans.

What Is Total and Permanent Disability Discharge?

TPD discharge is a federal program for borrowers whose physical or mental disability meets specific federal requirements.

A qualifying discharge can apply to eligible Direct Loans, FFEL Program loans, Federal Perkins Loans, and certain TEACH Grant service obligations.

This is different from traditional student loan forgiveness based on employment or years spent in repayment.

How Is Eligibility Determined?

Eligibility can be established using qualifying information or documentation from certain approved sources.

Federal Student Aid currently identifies three primary pathways involving:

• The U.S. Department of Veterans Affairs

• The Social Security Administration

• Certification from an eligible medical professional

The requirements differ depending on which pathway applies.

What If the Loans Are Also in Default?

Borrowers shouldn't automatically assume that being in default eliminates the possibility of discharge.

Default resolution and loan discharge are different concepts.

Someone with defaulted student loans who may also qualify for TPD discharge should understand how the potential discharge relates to the current status of their loans before deciding which path to pursue.

Smart Loan Aid can help borrowers review their federal loan situation and understand whether a discharge or another resolution option may be worth exploring.

Understanding the Right Type of Relief Matters

Disability discharge is designed for borrowers who meet specific eligibility requirements. It isn't a general forgiveness program available simply because student loan payments have become difficult.

However, for someone who potentially qualifies, it can be an important federal student loan relief option.

Could a Student Loan Discharge Apply to Your Situation?

Smart Loan Aid helps borrowers understand potential options involving disability discharge, Borrower Defense, repayment programs, consolidation, and default resolution.

Contact Smart Loan Aid to speak with a student loan advisor and explore which federal student loan options may apply to your circumstances.

Smart Loan Aid is an independent student loan assistance company and is not affiliated with the U.S. Department of Education. Eligibility and final approval for federal programs are determined by the applicable loan holder, servicer, or government agency. Results are not guaranteed.