Taking on student loans is a huge commitment. You sign up for them knowing you’ll need to work hard to pay them off — but what if something serious happens and you aren’t able to?
What if you come down with a serious illness, or are involved in an accident that leaves you physically unable to work? If you’re left totally and permanently disabled, you could qualify for student loan forgiveness through the U.S. Department of Education.
However, as you might imagine, this can be a lengthy and complex process. Here’s a complete guide on the process of applying for student loan forgiveness due to a disability.
What Is Total and Permanent Disability Discharge?
Total and Permanent Disability (TPD) discharge is a program created by the U.S. Department of Education. It relieves the disabled borrower from having to repay federal student loans or TEACH Grant service obligations.
Nelnet, a student loan servicer, assists the Department of Education with this process. Nelnet manages all of the communications with borrowers on behalf of the Department.
Which Loans Are Eligible for TPD Discharge?
TPD discharge only applies to federal student loans. It relieves debt from the following:
- William D. Ford Federal Direct Loan (Direct Loan)
- Federal Family Education Loan (FFEL)
- Federal Perkins Loan Program loans
In addition to these three federal loans, TPD discharge can also relieve you from having to fulfill a TEACH Grant service obligation. If you have one of these loans and are looking to apply for a TPD discharge, you must first prove you are totally and permanently disabled.
How to Prove You're Totally and Permanently Disabled
There are three ways you can show you meet the TPD discharge requirements, according to the FederalStudentAid:
- If you’re a veteran, you can apply for TPD discharge and provide documentation from the VA showing you have a service-connected disability (or disabilities) and are unable to work.
- If you receive Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI), and your next disability review will be within five to seven years of your most recent one, you may apply for TPD discharge. You can submit paperwork showing your SSA notice of award for SSDI, SSI benefits, or a Benefits Planning Query that states the date of your next review.
- You can submit a certification from a doctor (an M.D. or D.O.) declaring you’re totally and permanently disabled. The physician must certify you’re unable to work due to a physical or mental impairment that: can be expected to result in death, has lasted for a continuous period of not less than 60 months, or can be expected to last for a continuous period of not less than 60 months.
Each option for conditions eligible for TPD discharge has its own set of requirements when going through the application process.
How to Apply for TPD Discharge
The Department of Health has agreements with the Social Security Administration and VA that allow them to determine who qualifies for a TPD discharge. If they think you might qualify, they’ll contact you to let you know next steps. If you’re contacted based on information received from the SSA or VA, you don’t have to provide supporting documents.
If you haven’t been contacted and believe you meet the requirements above, you can fill out the application, attach supporting documents, and mail it in to the Department.
If you’re unable to complete the application on your own, your representative can complete and submit your TPD discharge application on your behalf. With this option, your representative will have to complete an Applicant Representative Designation form. This has to be submitted and processed before they’re able to work with your representative.
Obtain a TPD Discharge Application
There are a few ways you can get the application:
- Start the application online. You can’t fully complete all the required parts online, since you will have to physically send in supporting documents. However, you can get it started online — visit the link here. The Department will use the information you provide to send you a partially completed application in PDF form, which you’ll print and fill out the rest by hand.
- Download and print the application. Instead of filling out the first part of the application online, this option allows you to download and print the entire blank application and fill it all out by hand. You can find the blank application here.
- Request an application by phone or email. With this option, you’ll contact the Department either via phone or email and request an application be mailed to you. The phone number is 888-303-7818 and the email is DisabilityInformation@Nelnet.net.
Filling Out a TPD Discharge Application
Regardless of the option you choose to obtain the application, you’ll have to fill out some or all of it by hand.
If you opted to start the application online, you’ll have filled out the first and second sections already. A PDF version of it will be emailed back to you for you to print out and manually complete the third section. If you printed the application yourself or requested one be mailed to you, you’ll manually fill out sections one through three.
Once the application is filled out, you’ll have to attach supporting documents or have a physician fill out the fourth section. The supporting documents for each disability option differ a bit.
Veteran Affairs determination: If you’re a veteran, you must supply documentation from the VA that shows the VA has determined one of the following:
- You have a service-connected disability (or disabilities) that are 100% disabling.
- You are totally disabled based on an individual unemployability determination.
Social Security Administration: If you’re applying as a recipient of SSDI or SSI benefits, your paperwork must be an SSA notice of award for SSDI or SSI benefits. The paperwork must also state your next scheduled disability review will be within five to seven years of your most recent disability determination.
Physician certification: You can submit your application with a certification from a physician that shows you are totally and permanently disabled. After filling out sections one through three of your application, you’ll have a physician (either an M.D. or D.O.) complete section four of your application. It is important to note that with this step you have to mail in the completed application within 90 days of the date your physician signed the application.
After attaching all necessary paperwork to your application, you must mail it in to the Department. The address to mail your application and supporting documents can be found here. You can also fax it, email it, or scan and upload it to the disability discharge website.
What Happens After You Send In the Application?
After the Department receives your TPD discharge application, they’ll contact the holders of your federal loans or TEACH Grant service obligation and suspend collection on your loans while they determine eligibility. Basically, you won’t have to make any payments on your loans while they look over your application — this period can last up to 120 days.
However, if your loans are in default and your payments are collected through wage garnishments, this will continue until your discharge is approved.
Next, your application and supporting documents will be reviewed to make sure everything is completed. After the review process, the Department will reach a final decision.
What Happens If You're Approved?
Once the U.S. Department of Education approves your discharge request, you’ll be notified of the approval and your loans or TEACH Grant will be transferred to them for discharge. The lenders will also be asked to return any payments you made after the disability date, which is when the Department received your application.
If your TPD discharge was based on Social Security Administration documentation or a physician’s certification (this does not apply for veterans), you will be subject to a three-year, post-discharge monitoring period.
Starting from the date your discharge is approved, the Department will reinstate your obligations to pay back the loans again if one of the following is true:
- Your annual employment income exceeds the poverty guideline amount for a family of two in your state, regardless of your family size.
- You receive a new Federal Direct Loan, Federal Perkins Loan Program Loan, or TEACH Grant.
- A disbursement of your federal loans or TEACH Grant that you received before the discharge date is made, and you can’t ensure the full amount will be returned within 120 days.
- SSA determines you are no longer totally and permanently disabled, or that your next disability review no longer meets the five-to-seven-year review period.
You have a few other responsibilities during this three-year monitoring period. You have to contact the Department if:
- Your annual earnings exceed the poverty guideline amount for a family of two in your state, regardless of your family size.
- Your address or phone number changes.
- The Department requests documentation of your annual earnings from employment.
- You receive notice from the SSA you are no longer permanently and totally disabled, or your disability review doesn’t meet the five-to-seven-year period from your most recent review.
What Happens If You're Denied?
You’ll be notified via mail if your application was denied, and your loan holders will start collecting payments again.
This letter will state why you were denied and what you can do if you have any questions about the decision. If you have additional information you want the department to consider within a year of the denial letter, they will re-evaluate your application.
Other Questions About TPD
Does TPD Discharge Affect Taxes?
Thanks to the new tax code that went into effect early this year, the disability discharge of federal student loans is now tax-exempt. Previously, this discharge had to be reported as taxable income and could mean a pretty hefty tax bill when the time came. However, take note — this only applies to discharges during 2018 through 2025.
Is There Disability Discharge for Private Student Loans?
The U.S. Department of Education’s TPD discharge only applies to federal student loans, but what if your loans are private? While there aren’t any disability loan forgiveness programs for private student loans, some lenders have started offering this service themselves.
Here are a few lenders that offer disability discharge for private student loans with programs similar to the TPD discharge:
- Sallie Mae’s website states they will waive the current balance if a student becomes permanently and totally disabled. There isn’t an online application — you can call them at 800-472-5543 for more information.
- Wells Fargo offers private student loan forgiveness in the event of total and permanent disability. This forgiveness also extends to its Student Loan for Parents loan in the event the student receiving the aid becomes disabled, and the Wells Fargo Private Consolidation loan.
- Discover offers a 12-month forbearance for students suffering from hardships based on a medical disability.
If I Have Several Federal Student Loans, Do I Need to Submit Multiple Applications?
No. If you have federal student loans with multiple lenders, you don’t need to complete more than one application. When you send in your application, the Department contacts the lenders for all of your federal student loans.
If you have any more questions about the TPD discharge program through the Department of Education, refer to their FAQ page.
Jacquelyn Pica is a writer at The Penny Hoarder, a personal finance website that helps you make smart money decisions. Here’s their latest guide to paying off credit card debt. Find her on Twitter @JacquelynTPH.
Jean Poppe says
I recently qualified for discharge of my federal student loans due to disability based on my doctor’s certification. For purposes of the three-year monitoring: What is the definition of employment income? Does it include my husbands income? Does it include Social Security retirement income? Does it include ira retirement income? My concern is if I need to file income tax married filing separately to distinguish my income vs husband’s income.
Would be greatly appreciated if you can clarify any of this .
Robert Farrington says
The rule is you are disqualified if you have annual employment earnings that exceed the Poverty Guideline amount for a family of two in your state, regardless of your actual family size.
Employment earnings is considered W2 income, 1099 income, active partnership income, self employment/small business income. Social Security and IRA distributions are not considered employment income.
You shouldn’t need to change your filing status on your taxes – it can still be tracked by W2s or 1099s in your name/SSN.
Debra L Christopherson says
I applied for this disability discharge due to my rheumatoid arthritis and the fact that I’ve been receiving SSI for over two years and I don’t have another review for several years. I thought I qualified. But instead of being accepted or even denied, it says that my application has been rejected. What does that mean and is there a difference between a denial and a rejection?
Robert Farrington says
That could mean you didn’t properly fill out the forms. Why was it rejected?
K. Davis says
I had the same situation. I was rejected because SSA categorizes us as disabled but reviews us every 3-5 years. For a discharge one needs to reviewed every 7 years. I qualified after I submitted the physician certification signed by my rheumatologist. That form is available on the TPD website.
Happynfree says
How long after TPD discharge does the garnishment stop and you receive reimbursement? I know it’s only from the date of the paperwork.
Robert Farrington says
Usually takes about 30 days or so once it’s approved.
Barbara H says
My letter explaing the discharge due to disability determined by SSA said that credit bureaus would be notified. Does this negatively affect my credit score or how other creditors such as mortgage holder or credit card companies treat my credit worthiness?
Robert Farrington says
Yes, it likely would be a positive but it’s impossible to know. Your loans will update on your credit report as discharged.
Lynn Tomlinson says
I just finished my 3 year monitoring period. I was thinking of doing something part time at home to supplement my income. I just talked to NELNET and they said they won’t be monitoring me any longer and that they are sending out a letter today. Has anyone tried working after the monitoring period is over? Just curious. Thanks!
Robert Farrington says
After your monitoring period you should be fine.
Shalene B says
Does my husbands income count towards the poverty limit? Or do they just use my income? We have been married 19 years.
Robert Farrington says
It’s the borrower’s earnings, not a spouses’ earnings.
Linda Ciabattari says
I’ve been disabled and collecting SSDI for 7 years. I have repeatedly tried to file for student loan dischage, but Nelnet keeps asking for the Benefits Planning Query from Social Security. When I ask for that from Social Security, all I get is a letter that states they will be reviewing my case from time to time. I have had only one review in the past 7 years which was in 2018 (been disabled since 2011). I have submitted the letter from Social Security that they have provided me as well as my benefits letters for the past 7 years and they will not approve my discharge. My doctor said he does not know how to fill out Nelnet’s certification form and doesn’t want to get involved. What can be done to get this loan discharged.
Robert Farrington says
Get a new doctor and/or speak with an attorney who can help you get the required documents from Social Security.
Annamaul93 says
If your SSI or SSDI medical review is only once every 5 or 7 years, ask the Social Security Administration for a SSA Benefits Planning Query (BPQY, form 2459). If you call 1-888-303-7818 (disability discharge office) and ask to be emailed the forms, there’s a “tip on applying” pdf they send along with the main application. They also send another OPTIONAL attachment/form for signing rights to a representative of your choice to file on your behalf. You don’t worry about that unless you want a proxy.
Short answer: ask SSA for a “BPQY”. They will know what you mean.
Joey says
How is income “monitored”? Just curious..
DO they check up on people’s tax returns? Call the IRS? Isn’t that illegal?
It’s a great service, but I wonder if they hound people..
Robert Farrington says
They check your tax returns. It’s not illegal because you agree to it as part of the program and sign documents that say you agree to it. There’s no hounding – it’s just like when you get a mortgage your lender goes and gets your tax returns as well – it’s painless on your end.
Amelia K says
I have finished my 3-year monitoring period in June 2018. The new tax code applies so I have no tax penalty associated with my discharged student loans. I am considering working part time as my health allows and wondered about the credit check for employment. The potential employer WILL do an extensive check into employees and their credit. How exactly will the credit report read … just that student loans have been discharged or is the reporting more detailed?
Robert Farrington says
It will read that the loans have been discharged. That’s it. Beyond that, it’s up to you and your employer to discuss it.
David says
Went into my local SS Office to get a copy of my SSA-2459 – As requested from Dept of Education for Student Loan Forgiveness. To my suprise, it said “medically reviewed every 3 plus years”. I have been collecting SSDI benefits since 2009 and only have had one medical review (filled out some document and sent it back – recieved a letter back saying we are not going to proceed any further on this matter…something to that effect). Essentially, in 10 years I’ve been reviewed once. I have yet to submit the SSA 2459 with my application, as I don’t know if it will get approved due to their every 5-7 year medical review policy. What should I do…any suggestions/advice? Thank you 🙂
Robert Farrington says
You should submit your most recent documentation no matter what. If you get denied for forgiveness, then go raise hell at the SSA to get reviewed again, then repeat the process.
Michael Pullen says
I have been on disability for about 8 years. I am veteran, but not a service connected disability. VA has been giving me the run around on getting this done. They say they are not qualified to fill it out?? I only have one or two months left to file this. My Benefits Planning Query says I am to be reviewed every 3+ years, but needs to be 5 to 7+ years for forgiveness. I have no idea how to find a doctor to do this and read something about “doctor shopping” and how it can have a negative effect on me. What can I do? Please help??
Robert Farrington says
If the VA isn’t handling your case, then you should have a doctor handling it. Or you can work through SSA.
Debra says
If they recently took my federal taxes while I’m waiting for my disability discharge application in the mail to come. Once I am approved for the discharge will they return my federal taxes to me ?
Robert Farrington says
No sadly. But any discharge you receive will be for the lesser amount of anything that was applied to your loan balance.
Lee says
I recently had my loans discharged via TPD and found out I don’t owe federal taxes (discharged in 2018 after 3 year monitoring). What I can’t find any information on is if I’ll owe California state taxes. My CPA is looking into it but anxious to find out if anyone knows? Almost 150k discharged so state taxes will be significant. Thanks.
Robert Farrington says
CA tax law typically complies with Federal law (and even exceeds it) when it comes to taxability of loan discharges. However, we can’t find the specific update for TPD discharge. You should definitely consult with a tax professional.
Sean says
Hi Lee. I’m in the same boat and awaiting a call back from the Franchise Tax Board to see what the law is. Have you received any other information about CA treatment of TPD student loan discharge? Thanks!
Robert Farrington says
CA conforms with Federal law for this. See this.
Sean says
Thank you, Robert!
Jason says
I have a letter from Ssi and ssdi stating I’ve been disabled since 2011. Was seen in court in 2017 and approved….received back pay but was said to b seen in a year it’s been 2 and nothing…should I bother trying for dismissals of loans?
Robert Farrington says
Of course you should try for it, but you might need SSI to initiate a benefit planning query to get your timeline extended out.
Tammie says
I was approved for 100% disability by SSA in Feb 2014 for terminal cancer. I had two loans each about 2500 dollars and one Perkins loan for 755 that were processed under disability discharge in April of 2017. I started going to community college all online and completed my AA degree just last quarter while still undergoing surgeries for all the radiation damage. I have also been diagnosed with pelvic radiation disease, which is lifelong issues due to the high level of radiation I received. I have been accepted for University for an all online program ( I physically cannot manage full-time student face to face classes but can take online classes even from my hospital bed) My main question is that even though I know I am still within the three year monitoring period, and do not want to apply for federal student loans, am I eligible for grants like the Pell grant for my ongoing schooling? I cannot give up my disability as I still have at least 2 major surgeries in the next year and need the Medicare coverage. If they review me in the 5-year window, that would be this August but I have had 13 surgeries with at least 2 more in the process all due to cancer. Just looking for a way to complete my degree even with my illness.
Robert Farrington says
First, to get anything after a discharge, you must get your physician to sign a statement that you’re able to once again engage in sustainable gainful employment. And you must sign a statement acknowledging that you can no longer qualify for a future TPD discharge.
If you get a new grant or loan during the 3 year monitoring period (which it sounds like you’re thinking about), you must resume payments on the loans discharged.
SK says
I am a 100% service connected disabled veteran. I understand that I don’t have a monitoring period, so my question is less about me than about my child. I have one in college now and one that may be starting back to school soon. Does this discharge prevent me from having any parent loans? We try to minimize it, but I just want to make sure that it won’t affect the discharge process. I do not work but clearly I do have VA disability payments. Any ideas?
Robert Farrington says
Correct, you cannot get a Parent PLUS Loan (nor should you – we hate parent loans but understand what you can get). Have you looked into your VA Education Benefits since you’re 100% disabled? Specifically the DEA program since you are 100% disabled?
Annie says
After the three year monitoring period, if I (say, 5-10 years from now) am up for SSA disability review and it is determined that I am no longer disabled, would I then have to start paying back the loans, or would they still be forgiven?
In other words, would the loans be re-instated after the three year monitoring period if I stop being disabled?
Robert Farrington says
No, they will be forgiven. You will, however, be unable to get any type of future Federal aid unless your doctor certifies you’ll be able to get gainful employment. You’ll also never be able to get any loans forgiven in the future under disability discharge if they are for the same disability you have now.
Mike says
I am a 100% service connected disabled veteran, and I like to know if this discharge prevents me from to go back to work part-time, do volunteer work or continue my education(non-loans) in the future.
Robert Farrington says
It could.
– In your 3 year monitoring period, you cannot earn more than the guidelines stated above. So, you can volunteer, but even part time work may prove risky.
– You can totally continue your education, but you cannot get any more loans during the monitoring period.
– After the monitoring period, you can get new loans, but only if your physician certifies you able to work, and under the condition you cannot get discharge again
Mike says
I am presently going to school and I am also a 100% service connected disabled veteran. Did you know if I can apply for the discharge when I am in school and if I can continue pursuing my education?
Robert Farrington says
You can apply for the discharge whenever you qualify for it. You can also continue pursuing your education. The big issue is you cannot get any Federal money (grants, loans, etc) to help you continue pursuing your education after you apply for the discharge – and then if you do ever need money again, you borrow it under the certification you cannot get loan forgiveness on it.
Dwanda says
Robert,
I am under the impression that 100%, service-connected, VA disability is exempt from the three-year monitoring period (according to your breakdown under “What Happens After Approval” (something like that ?)). Please could you clarify as your response to the previous question confuses me?
Robert Farrington says
Correct, the 3 year monitoring period does NOT apply to borrowers who are approved for a total and permanent disability (TPD) discharge based on a Veterans Administration (VA) determination of unemployability due to a service‑connected disability.
However, the ability to borrow future student loans still does apply.
Tina says
Do your loans start all over again if you want to go back to school after your monitoring period is over?
Robert Farrington says
After the monitoring period, you can go back to school, you just cannot borrow more in loans unless a doctor certifies you fit to have gainful employment. You are also further disqualified from disability discharge for the same disability.
Shelly says
Can I work part time during the 3 year monitoring period as long as the income falls under the “gainfull employment” number SSA states? Is your disability check included in the calculation or is it employment income only that they consider?
Robert Farrington says
As long as “Your annual employment income doesn’t exceed the poverty guideline amount for a family of two in your state, regardless of your family size.” Disability income isn’t considered employment income.
Shelly says
Thank you so much.
I just feel like there must be a catch. My brain is unwilling to believe it lol. Thank you again.
Becky says
I had my student loans forgiven due to being a 100% P & T Disabled Veteran prior to them allowing the forgiveness to be non taxable. As such, I ended up with a large tax bill, which required me to mortgage my home in order to pay the tax bill, after having numerous threatening exchanges with the IRS. Is there any way for me to recover even a portion of the taxes that they extracted from me to pay for this forgiveness which they classified as ‘income’ for taxing purposes?
Robert Farrington says
Sadly, if you had your loans discharged before 2018, it was considered taxable income. After 2018, it was no longer subject to taxes.
JL Jackson says
I had my child’s student loan discharged due to my t & p service connected disability. Will it be transferred to her to have to pay? Discharged 03/2019.
Robert Farrington says
It sounds like it was a Parent PLUS Loan? If so, it was always your loan, and so it would never be transferred to your child.
Kimberly says
I am looking for clarity on the poverty line condition. I read that disability payments don’t count as income – but on here it says W2s would count. I am on LTD through my former employer and deemed permanently disabled – but my disability payments still get taxed and I receive W2s – Which is the correct information? Does employer paid long term disability count as income?
Robert Farrington says
This is a complicated subject. But basically, If you get benefits from a disability insurance policy, the IRS classifies your payments based on who paid the insurance premiums. If you paid the whole cost of the premiums out of your pocket, as with a private policy, your benefits aren’t considered earned income. In fact, you don’t report those benefits as income at all; insurance payments are generally untaxed.
Some employers offer their workers a supplemental disability insurance policy, in which you and the employer split the cost of your premiums (or you pay nearly all the cost). In this situation, the part of your benefits that your employer paid is earned income — which means it’s taxable. If the employer paid 70 percent of the premiums, for example, 70 percent of your benefits would be earned income that you’d have to report on your tax return.
Now, Social Security disability benefits and military disability benefits are NOT considered earned income.
Rhonda says
I am wondering how long it takes for my loans to actually be discharged and receive a refund of the payments I made through treasury offset of my SSDI. I was approved April 3, 2019 for TPD. The offset stop after April, but the loans are still with my debt collector and no one can tell me when it well go away and who will refund my offset.
Robert Farrington says
It usually takes about 60 to 90 days after you’re approved.
Mark says
Hi. I am applying for a student loan discharge. I am 100% disabled as per The SSA and my Physician. My concern is the the three year monitoring period. I was a federal employee but was granted disability retirement. Will this disability retirement income count as gainful income? I have to claim it on my taxes but it is listed as disability retirement. Thank you.
Robert Farrington says
Disability benefits aren’t typically considered income. The only time it sometimes is – is if you had a supplemental policy that you paid for and now you’re receiving benefits as a result of the payout. That doesn’t sound like the case, so you should be fine.
Mark says
Thank you!
Michele R says
Hi Robert – I’m confused ….if Disability benefits aren’t considered income then how is it that people’s SSDI payments can be garnished by the DOE/student loan servicers for outstanding student loan debts?
Randy says
Two questions:
(1) If the requirement for permanent discharge based on social security review period requires 5 to 7 years, do you know whether it is even possible to request social security to change the review period from 3 plus years to 5 to 7 years if you believe your circumstances warrant the change?
(2) Do personal injury settlements count as “employment” income during the 36 month monitoring period?
Robert Farrington says
1. One of the comments above walks through how to request a change to your disability review period.
2. If you receive a settlement for personal physical injuries or physical sickness and did not take an itemized deduction for medical expenses related to the injury or sickness in prior years, the full amount is non-taxable. The settlement doesn’t count as employment income.
Jenny says
My benefits planning query says “unknown” in the space next to medical review cycle. I’ve applied for a discharge with this information. I’m confused because everyone is saying 5-7 year medical review. Well, my BPQY form simply states “unknown”. No numbers..just unknown.
Robert Farrington says
If you read through the comments, there is a great process to get this updated.
C Murray says
Hello,
I am in the 3 year period of being monitored by Nelnet as my loans will be discharged. What I am wondering if I can take a class during this 3 years if I pay cash for my class. I only have 1 class to graduate. Thank you for your help.
Robert Farrington says
Yes, you can – you just aren’t eligible for financial aid. So don’t fill out the FAFSA, and let the school know you’re paying cash.
Michele says
Hi. I’m sorry to be so brutally honest but I was greatly disturbed by an answer you gave one female student loan debtor. Mainly because a similar situation applies to me. I was told by my lawyer that no student loan lenders or servicers can garnish pay from SSI. But you answered her that it was Congress’ decision and SSI can be garnished without a court order. WTH!! First, I don’t think you are right about this and even if you are, I’m sure it’s illegal to put someone out on the street because they blood-sucked the debtor to death!! I only bring in $550/month from SSI income!! I am totally and permanently disabled and will be for the rest of my life!! I have an attorney who is helping me to get my student loans dismissed due to my TPD but unfortunately, the SSA stated they would due a medical review of my case again in about 3 years. I also have a doctor who will fill out the required form so my lawyer can submit it to Nelnet. My loans have been in default for over 5 years now and I have never made a payment once!! I learned I was disabled not long after my loans became due for repayment. Therefore, I have never held a job since then. I was told by my lawyer that if they should happen to “freeze my debit account” that is receiving my SSI payments that it would take time to “fight it” but that they should release the account once they learned it was for SSI payments. Please let me know if my attorney doesn’t have this right so that I may look for another attorney. Or, like I stated above, could you be wrong about this?? Because if it’s true that they can garnish poor disabled peoples’ SSI payments than that is BEYOND inhumane!! Animals don’t get treated that badly!!
Robert Farrington says
They can garnish your SSDI payment en-route, but they cannot seize an SSI or SSDI payment out of a bank account if it’s already been paid.
Read this from another expert: https://getoutofdebt.org/100844/ssdi-payment-garnished-federal-student-loan
Michele says
Thanks for replying. But, I really don’t understand what you mean by “en route.” How can they seize anything en route? Does it matter if it’s the USPS or direct deposit to a bank account or in my case direct deposit to a debit card/credit card account for my SSI pmts?
Tammy Pulhurth says
My TPD three year monitoring period will be over in November 2019. I was offered to dog sit full-time for a wage of $11 per hour. I have to just be present no lifting so it’s a great fit and much needed income. It’s now June 2019. Can I work this job and still have my discharge in November of 2019? It’s only for six months but I’m not sure what or how they decide the “poverty level” if you have an opportunity to work that doesn’t require any lifting. Will it be from November 2018 to November 2019? Or will they look at the pay and full-time as a yearly income? Very lost on how this works.
Robert Farrington says
Here are the poverty guidelines: https://aspe.hhs.gov/2019-poverty-guidelines
For 2019, you cannot earn more than $16,910 in wages – either W2 or 1099. So, you need to do the math an ensure your earnings don’t exceed this amount.
Karen J. says
I’ve just received my packet of info (the awards notice?) for my SSI disability. I’m 56, have a congenital neurological birth defect known as Chiari 1 Malformation, and it has caused me to have syringomyelia. Additionally I have hypertension, diabetes type 2, sleep apnea, restless legs, ocd/anxiety, and have dealt with PCOS a majority of my life. When I spoke to my disability rep of my concern regarding being reviewed, he commented that it was likely i might not be reviewed, at all. I suppose he said that, due to my age (birthdate 9/20/62). Through my search engine queries I figured out that I perhaps fall under grid rules. I was surprised to read in my awards letter that because SSA feels my health may improve, they will do a review in about 3 yrs. The only way my health “might, just might” improve is if I were to have fossa decompression surgery, and said surgery is at best 40 to 50% successful, there can be complications, and many instances, those who have endured surgery wind up experiencing the return of their Chiari 1 Malformation instigated symptoms.(C1M is when a person’s skull is too small for their brain, creating pressure that forces the brain down into a person’s spinal canal, That same pressure can also force brain fluid into the spinal canal, forming a syrinx, which is what is going on with me. It physically compromises a person’s nerves). I had hopes of having my $21k student loan possibly discharged, but I with them stating that I will be reviewed in about 3 yrs, I can only gather that I will be ineligible to apply for a discharge until that review, and possibly will never be able to apply for student loan discharge. I am currently and have been on the income based payment plan under which my payments are -zero-. My student loans date back to 2009 thereabouts, when I decided to return to school at the local university extension to earn my teaching certification which wound up expiring while I was sole caregiver to my elderly mother who was diagnosed during a 2 week stint in physical rehab, as having frontal temporal lobe dementia. Regarding my loans, my SSI monthly payments will be $771.00, the back pay is based on somewhat lesser amounts which existed in the two years of my wait period. All I can figure to do, is to stick with my income driven repayment plan at 0, I do have a neurosurgeon, but of course he wants to operate on me, whereas I wish to manage my symptoms. I can’t help but to wonder if he would even sign the paperwork necessary to permit me to seek discharge, I was so relieved to have received my first SSI payments for June and July, plus some backpay, just three days ago, and now I am worrying all over again, about my student loan, When I was younger I had attended UT Austin, but alongside of payments, and also serving in Americorps, I managed to pay that previous loan off, entirely. But this amount now, scares me, have you ANY suggestions at all, as to what I should, or could do, regarding seeking total discharge?? I’m even afraid to call Neinet for fear of stirring up a hornet’s nest. Tia.
Robert Farrington says
I think you can continue to press for a longer review period to get a discharge. But until the, the IBR schedule of $0/mo is effectively the same thing. And remember, your loan will eventually be discharged under IBR (after 20 years if they were from 2009). Not ideal, but if you pay $0/mo until that point, it’s just a little extra paperwork each year.
Nick says
If I have been under the poverty level for the first 2 years of the monitoring period but due to struggling with bills and feeding my kids I had to get a part time job at call center but paid over $16.00 an hour and at end of year I made $22,000. Will they reactivate student loans.
Robert Farrington says
If you exceeded the poverty level, you need to report it to the Department of Education. They likely will make you enter repayment on your loans.
Cletis says
Doesn’t the IRS report it to them or is it just by self report?
Robert Farrington says
You should report, as they do check. But they may not catch it for a year or more. I’ve seen them kick loans back into repayment years later because of this.
Jeff says
For self employment do they look at gross earnings or net earnings after expresses when counting for poverty guidelines?
Robert Farrington says
They will look at your net income you report on your taxes.
Lennin Tejada says
I just became 100% service connected with the VA. I have defaulted on my student loans now for a few years. Can they still get discharged?
Robert Farrington says
Yes, you can apply for it. Follow the directions.
Courtney B Leever says
If i apply for TPD whether im approved or denied will it prevent me from being eligible for student loans in the future?
Robert Farrington says
You cannot get new Federal loans in the monitoring period. After the monitoring period, you can only get loans if you sign a sworn statement acknowledging you’re able to get gainful employment to repay the loans and you won’t be eligible for future TDP discharge.
Versiera Miller says
I recently submitted my TPD application. Before submitting it, I contacted SSA to determine my review period. I’ve been on disability since 2010 and was told my review period was every 3 years which I have not had ever 3 years. Anyway, I had my doctor’s office complete the form and submitted it. I have not received my notice yet but when I went to my online account instead of saying under review as it had been saying the past 3 weeks it is now saying rejected. So until I actually receive a letter I am not sure why it was rejected. My question is I have read through all the questions and comments on this page and you made reference to there being information on contacted SSA to update review periods but I’m still confused as to how this can be done. I have also did extensive searches with no true understanding. So how exactly can I contact SSA to try and get my review period updated or changed or is that even possible? Because I believe the reason for the rejection is I think they (drs office) had the PA I see complete the form. I rarely if ever see the actual physician so if I could get the Form 2459 (BPQY) from SSA it would be a lot easier for me. On another note for those that do not think their SSDI can be garnished I’m here to tell you that it can. They have been garnishing my check for over 6 months and it has put me in an extreme hardship. So I really need to get this application approved and fast.
Robert Farrington says
Ask the Social Security Administration for a SSA Benefits Planning Query (BPQY, form 2459). If you call 1-888-303-7818 (disability discharge office) and ask to be emailed the forms, there’s a “tip on applying” pdf they send along with the main application. They also send another OPTIONAL attachment/form for signing rights to a representative of your choice to file on your behalf. You don’t worry about that unless you want a proxy.
Short answer: ask SSA for a “BPQY”. They will know what you mean.
Carrie says
I am 100% Permanent and Totally disabled. The application for discharge states that if you are P&T there is no monitoring period. Is this true? Does this mean that my income wont be monitored? Once I get the letter that says its approved, everything will be discharged? How long does that take?
Robert Farrington says
If you are P&T due to a service-related disability (because you’re a veteran), there is no monitoring period. If you’re not a veteran, there is a monitoring period.
Mel Graham says
I’m a 100% disabled veteran (T&P). My oldest will be going to college next year so I was wondering if I could take out the loan and then have it discharged as part of the TPD program?
Robert Farrington says
No, if you take out a loan after being 100% disabled, you have to sign a certification that says you’re ineligible for TPD discharge.
However, look at Military And Veteran Education Benefits – specifically the DEA program. This program is designed to provide tuition assistance to children of disabled veterans.
Julie London says
I will begin receiving my social security disability benefits in October. I have already had my loans discharged. I have Also earned 403B Distributions from 2 universities One is $1555 the other 1 is $ $400 I also M eligible for disability payments through the long term disability at my University until I am 65 years old. I am currently 61. I am extremely worried about this additional income And how it relates to the poverty level requirement as this money adds up to more than $19000 . Do you think that any of this might not count toward Income.? Thank you
Robert Farrington says
Its employment income. Investment income isn’t considered earned income.
Tyrone says
I’m a disabled veteran 100% P&T and my TPD application was approved in July. My question is how long does it normally take for the lenders to send over your loan information so it can be discharged?
Robert Farrington says
60 to 90 days before you should have confirmation of the discharge.
Brandon Matthews says
I am 100% Service Connected TPD.
Inhad my loans discharged this year and I want to go back to school because I only got my associates. Can I go back to school, get more moms and then discharge them again?
Robert Farrington says
You can go back to school, but if you do take out more loans, those new loans CANNOT be discharged.
Scott says
I have a question, once my TPD discharge has been approved, will I receive a refund of offset from treasury. Disability says disabled in 2002. Beginning 2012, I was garnished from SSDI payment monthly, and also in 2012 I had my tax refund taken?
Robert Farrington says
No, you won’t get any refunds of past payments or offsets.
Mike Rush says
I have a question, I am 100% P&T disabled through VA effective date is April 2017, and my application was approved for TPD. When will I receive a refund on my student loan payments?
Robert Farrington says
You won’t receive a refund on any past student loan payments. You only receive a refund of payments made (if you even made any – most don’t) from the date your application was accepted to the date of discharge on your loans.
Melissa Gibbons says
My husband is 100% T&P navy veteran. We took out a Parent Plus loan for our son a few years ago. The loan is in my name but the FASFA was in both of our names. I am his caregiver. Is this loan still able to be discharged due to his disability and my caregiver status?
Robert Farrington says
Sadly it is not. It’s in your name, not his. You can focus on an income-driven repayment plan, which could lower your monthly payment to as low as $0 per month, and see loan forgiveness at the end: secret student loan forgiveness options.
Anthony Betts says
Is there a specific form for physician & borrower to complete to return to school after TPD discharge, or is a signed letter declaring borrower’s fit to return & ineligible to discharge future loans acceptable? And, who is to receive such documentation?
Robert Farrington says
There isn’t a form. You need to create a letter and send it to NelNet Disability Discharge services.
From their site:
If we grant a TPD discharge of your federal student loans or TEACH Grant service obligation, you will not be eligible to receive a new Direct Loan, Perkins Loan, or TEACH Grant in the future unless:
● You obtain a certification from a physician that you are able to engage in substantial gainful activity; and
● You sign a statement acknowledging that the new loan or TEACH Grant service obligation cannot be discharged in the future on the basis of any injury or illness present at the time the new loan or TEACH Grant is made, unless your condition substantially deteriorates so that you are again totally and permanently disabled.
Joanna Patten says
I was not informed that the TPD discharge is now an automatic thing. I was just recently award 100 Total and Permanent disability, however, I am still currently in school and I definitely need financial aid to pay for school. I just received a letter saying that the TPD discharge was approved but I never applied for it and I thought this was something I applied for after I finish school. I never received the first letter saying I needed to contact Nelnet prior to a specific date. I have a year left in school. What are my options now?
Robert Farrington says
You will only be allowed to take out new federal loans following a TPD discharge if you certify that the loans will not be dischargeable via TPD. Only the NEW loans are non-dischargeable, assuming others stay discharged.
I think it would be better if you can find a way to pay for that last year without new federal loans, but realize that you still the options – they just aren’t dischargeable.
You may also consider a private loan if the interest is better given that you can’t discharge future loans.
Ashley says
I’m on SSI and going to apply for loan forgiveness. If I get approved, do the loans my parents have go away too or just mine? My mom was a cosigner for my loans.
Robert Farrington says
Only your loans go away.
If the loans are Parent PLUS Loans, your mom would have to be the one with the TPD. If the loans are private loans, you should ask your lender and see – but most private lenders don’t offer disability discharge.
Av says
If I was enrolled in disability support services during my time at a cal state 2015-2018, is that enough to qualify me for loan forgiveness? Or do I still need a current certification from the doctor? (I evidentially did not receive my BA after 3.5 years of attending the cal state due to personal circumstances / life changing events I withdrew and I currently do not have the same dr. anymore due to change in healthcare….)
Robert Farrington says
You need to be certified totally and permanently disabled. SSI or VA is easiest, but you can see if a doctor will certify you as well.
JENNIFER DOTSON says
I was wondering if you get a TPD, why are you no longer able to get Grants such as the Pell grant? Or can you? Why are grants taken away from us if we are disabled? Are disabled people disqualified for federal grants? This does not seem fair that disabled people cannot get grants unless they are not disabled.
Robert Farrington says
You are eligible to get Pell Grants.
Other grant types are a “maybe”. For a TEACH Grant, you must get a letter saying you are able to be gainfully employed, and you must also sign a note stating the new grants won’t be eligible for TPD in the future if they convert to a loan.
JENNIFER DOTSON says
Ok, I was told that I would not receive any more federal aid including grants that I am eligible for.
Tracy A Jordan says
My husband took out a parent plus loan for my daughters fall semester. We received a notice that he’s preapproved for discharge. She still was awarded a loan for spring term under the same loan which should be distributed Jan 27 when the nee semester starts. They only referenced the Fall loan in the paperwork. We havent sent in the application for the tpd and have until 1/17. Will her Spring loan be affected? Also, can he still cosign for private loans and she can still apply for federal..we fill the fasfa out for her? What happens if we dont turn in the app if he was preapproved..it said we didnt need to send in documentation?…should we not accept? She may need more money in future? So confused
Robert Farrington says
It sounds like he’s a disabled veteran. You should accept the loan forgiveness, it’s a saving grace under all circumstances. You should continue as normal with the FAFSA.
Best case: your loans are totally forgiven and your new future ones are as well.
Worst: your loans are partially forgiven (the existing loans), and the future ones won’t be allowed to be forgiven.
You should always borrow Federal before private. If you need private, he can cosign, but whether you’ll be approved is up to the lender. And note: we never recommend people borrow private loans. If you do, she’d better have a good ROI on her education and have a solid plan to get a job and pay them back. You may also want to get a life insurance policy on your daughter – it would be very inexpensive (maybe $5 per month), but can be a saving grace if something happens.
Tracy Jordan says
Thank you. He is an army veteran but his disability is not from service. He has multiple myeloma (blood cancer in marrow of bone. They put the fall loan on forbearance until 1/17 and all we have to do is submit the request. My concern is the other half of the loan for Spring that’s not yet disbursed. By accepting this, cant they cancel the approved loan for Spring that was part of same annual Fasfa submission?
Robert Farrington says
They won’t cancel it, but they may not allow it to be discharged under the disability discharge.
Gray says
If someone is in the 3-year monitoring period, can they apply for and receive SSI?If they are turned down for SSI, could they lose their T&P forgiveness?
Robert Farrington says
Maybe – if your TPD status changes during the monitoring period, you need to report it. Specifically: You receive notice from the SSA you are no longer permanently and totally disabled, or your disability review doesn’t meet the five-to-seven-year period from your most recent review.
Gray says
What about if your TPD came from a doctor, and during the monitoring period you file for SSI or SSDI and you are turned down for SS?
jaime says
Hi I applied for TPD discharge on Dec. 12 2019 and got a “pending final approval”
notice in the status area of my Nelnet account on January 20, 2020 . I had my doctor do the doctor certification . Does anyone know about how long it will be before I get a final approval or denial ? In a really strange note I called Navient and they informed me that Nelnet put a 10 year no payment on my loans .
Robert Farrington says
It can take anywhere from a week to 90 days or so. It means that you were approved by your loan servicer, and the paperwork went to the Department of Education for final approval.
Tracy Jordan says
Hi. I received notice of preapproval for my Parent Plus Loan for my daughter. It was right on the cusp of her Spring loan being disbursed which has now occured. She still has another year and a half of school which I had planned on taking loans out for. Nelnet said to request after I am done requesting loans. I think that would be taking advantage and am unsure if I should request the TPD now are do as Nelnet stated? Is there a limit or timeframes a request can be made from the notice of preapproval?
Robert Farrington says
No time frame. Once you claim it, then you can’t ask again for the same disability.
Tracy Jordan says
I know you wouldn’t take out a parent plus loan but would you wait and continue to take out loans and then apply in a year or more? or apply now?
Robert Farrington says
If the loans have all been disbursed, you can apply now.
David Atchison says
I applied for and received the Disability Discharge and am in my 3 year Monitoring Period. I have looked around and read a lot searching for the actual rules of law regarding what is counted as income for FPL and TPD. I also have Medical Expenses that are for Co-Pays, Treatment and Medicine requires for me to be able to work. As well I receive extra help to be able to work – lower expectations, more rest breaks etc as well as expenses related to my Medically Modified vehicle and Hearing Aides. My question is really about deductions that SSDI accepts that lower my income below the SGA and FPL levels. Do they also accept those deductions as it relates to reporting your income for meeting the FPL level for TPD Monitoring. I’m in my last year now and have thousands of dollars in IRWE’s & Work Incentives. Are those accepted by the TPD people as well – as long as I have receipts? Or will they accept the AGI from my taxes? My 3 year periods begin and ends in May of Each Year for reporting purposes, I need to find out what they allow for deductions and exclusions for a disabled worker. I’d hate to end up finishing my 3rd Year a few hundred dollars over FPL because SS accepts Exclusions and deductions when counting SGA but I don’t know what TPD accepts…… so, any help with that would be great. Do they accept the Earnings Level SS calculates or can you not use any exclusions for IRWE’s and Incentive amounts for TPD, and they only look at flat taxable earnings without those qualifiers.
They don’t provide that much info on what they don’t count vs what they do count towards the FPL – whereas SS has a ton of info,,,,,
Thanks so much for the advice,
Robert Farrington says
They only look at your AGI from your tax return each year. If they want more information about employment earnings, they may contact you directly to ask for a paystub or W2.
David Atchison says
Since they calculate earnings during the 3 year post discharge period starting with the date they approve it, mine are from May 25th of 2019 to May 24th 2020. Would I need to submit something addition this year (3rd year) to recalculate my earnings? I assume if I get my accountant to take all my available disability deductions on my tax return, that might help. Or Do think a sworn statement my disability related deductions would suffice? It’s just stressful working, and being In my last reporting year for the discharge. I just don’t want to mes ps it up, nor can I afford to not work just to keep my earnings down. Thankfully I’ve only got 3 months left and I’m trying to figure out exactly what I need to do to be sure, any advice on that? Should I send in my tax return to help recalculate and lower my earnings? Is there anywhere aid can read about the rules for deductions related to this discharge reporting period? CFR? I hade no problem getting approved on my first try – I’m good with paperwork and my Dr’s are very helpful with signing forms I need signed. Reading other people’s issues getting approved, I wonder if it’s the luck of the draw – or some people aren’t as good at paperwork as I am. I did the physician statement due to my SSDI reviews being 3 years ( I never have had a real one though in 11 years.) but I do thank you for any and all the help you have given me and others. I’m glad there is someone out there who is willing to take the time to respond to questions – even if they are bit repetitive in nature, There is so much info available on starting the process and then the end of the process (taxes) it’s very hard to get good reliable info on the 3 year Monitoring Period. Again, thanks from me in everyone’s behalf for your assistance and I look forward to your Follow-up response regarding deductions and how to get it reported so it reduces my countable income,
Robert Farrington says
I guess I’m not following you – the rule is simple: Your annual earnings cannot exceed the poverty guideline amount for a family of two in your state, regardless of your family size. Don’t earn more than that.
David Atchison says
I guess I’m asking what are Earnings?
Pre-Tax? Post-Tax? Pre-Tax Minus Disability related and/or medical expenses?
It’s just not clearly stated. Like SSDI SGA is pre-tax minus any disability related expenses that are necessary for you to be able to work, as well as any Unreimbursed Work Expenses.
If I assume it’s the same as SSDI SGA rules, así might be ok, might not. You know what they say about assuming. That’s why it seems I’m asking for clearly defined guidelines that also apply apart from the “don’t make more than FPL for Fam of 2”
That’s all I was looking for, I wasn’t trying to be difficult. I do apologize. Thanks for any help. And I Accept the response as legit, just seeing if you knew more than that.k
Robert Farrington says
It’s annual earnings from employment specifically – anything reported on a W2 (box 1) or 1099-Misc for contract work.
Jesse says
Help my TPD applicationcame in the mail close to the end of 2019 I am 70% rated thru the VA my attorneys are fighting it. I have been completely out of work for two years now because of my disabilities. since the VA takes absolutely to long
To be within the required time frame of the TPD application and I wasn’t aware of the dates I planned to have my physician certify the documents. I am going today for my annual checkup I get the papers out and ready and I notice there is an expiration date printed on the first page. I didn’t know this and I feel so dense. Is there a route to start over and have them suspend collections or is that a one time only deal?
Robert Farrington says
If you don’t work and have no income, you should be on an income-driven repayment plan with a monthly payment of $0 per month.