- What is the Total and Permanent Disability Discharge?
- What is the Closed School Discharge?
- What is the False Certification Discharge?
- What is the Unpaid Refund Discharge?
- What is the Death Discharge?
- What is the Bankruptcy Discharge?
If you’re struggling to repay your student loans, you may be wondering if you qualify for student loan forgiveness. Read on to learn more about what disabilities qualify for student loan forgiveness.
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The federal government offers a variety of student loan forgiveness programs for borrowers with disabilities. However, not all disabilities qualify for student loan forgiveness. In order to qualify, the borrower must be unable to work and earn a living due to their disability. Additionally, the borrower’s income must be low enough that they would not be able to afford to repay their student loans even if they were working.
There are two main programs that offer student loan forgiveness for borrowers with disabilities: the Total and Permanent Disability Discharge program and the Income-Based Repayment program. The Total and Permanent Disability Discharge program offers complete student loan forgiveness for borrowers who are unable to work due to their disability. The Income-Based Repayment program offers partial student loan forgiveness for borrowers with low incomes who are making progress in repaying their loans.
In order to qualify for either of these programs, the borrower must first submit proof of their disability to the Department of Education. The Department of Education will then determine whether the borrower qualifies for student loan forgiveness based on their disability status.
What is the Total and Permanent Disability Discharge?
The Total and Permanent Disability Discharge (TPD) discharges federal student loans and grants if the borrower is unable to work and earn money because of an illness or injury. To qualify, the borrower must complete and submit the TPD discharge application, along with documentation from a licensed physician that verifies the borrower’s condition.
How to Qualify for a Total and Permanent Disability Discharge
You must complete and submit a Total and Permanent Disability Discharge Application, including documentation that:
-Establishes that you have a service-connected disability, as determined by the U.S. Department of Veterans Affairs (VA) or the Social Security Administration (SSA), OR
-You’re unable to work and earn money because of an illness or injury that’s expected to continue for at least 60 months, OR
You’ve been judged by a physician to be totally and permanently disabled.
What Loans Qualify for a Total and Permanent Disability Discharge?
The Total and Permanent Disability Discharge (TPD) is a discharge of your federal student loans and loan guarantee obligations. You must be totally and permanently disabled to receive this discharge. A total and permanent disability is a disability that:
-Can be expected to result in death,
-Has lasted for a continuous period of at least 60 months, or
-Can be expected to last for a continuous period of at least 60 months.
You can also receive a TPD discharge if the U.S. Department of Veterans Affairs (VA) concludes that you are unemployable due to a service-connected disability.
What is the Closed School Discharge?
The Closed School Discharge is a type of student loan forgiveness that is available to borrowers who were unable to complete their program of study because their school closed. If you are eligible for this discharge, you will have your loans discharged and will no longer be responsible for repaying them.
How to Qualify for a Closed School Discharge
The Department of Education (ED) offers a Closed School Discharge (CSD) to eligible borrowers who enroll in and then subsequently leave a school that closes while they are attending or soon after they withdraw. This includes students who did not complete their program because their school closed.
In order to qualify, you must:
-Submit a written request to your loan servicer, including documentation that you were attending the school when it closed, or withdrew no more than 120 days before it closed;
-Have unpaid Direct Loans, FFEL Program Loans, or Federal Perkins Loans received as a result of your enrollment at the closed school; AND
-Not have transferred your credits earned at the closed school to another school so that you could complete a comparable educational program at the new school within a reasonable time.
If you qualify for and receive a Closed School Discharge, the following benefits apply:
-You are no longer required to repay the loan;
-The discharged loan will be removed from your credit report; and
-If you are current on an income-driven repayment plan on the date you receive the Closed School Discharge, any unpaid portion of the balance of your loan is forgiven.
What Loans Qualify for a Closed School Discharge?
The Department of Education offers a loan discharge for students whose school closed while they were enrolled, or who withdrew within 120 days of their school’s closure. The borrower must have been enrolled at the time of the school’s closure, or have withdrawn no more than 120 days before the closure. This type of discharge is also available to students who were unable to complete their program because their school closed.
What is the False Certification Discharge?
The False Certification Discharge can cancel your student loan debt if you were unable to complete your program of study because your school falsely certified your eligibility. This discharge is also available if you became ineligible for your program of study because you did not have the appropriate ability to benefit from the education.
How to Qualify for a False Certification Discharge
The False Certification Discharge is available for students who were unable to complete their program of study because their school committed fraud or falsely certified the student’s eligibility to receive a loan. This discharge is also available to students who became totally and permanently disabled after they obtained their loan.
To qualify, you must:
-Have been enrolled in the program when the misrepresentation occurred, OR
-If you withdrew from the program before the misrepresentation occurred, you must have withdrawn no more than 120 days after the date the school made the misrepresentation.
-Not have known about the misrepresentation at the time it occurred
What Loans Qualify for a False Certification Discharge?
A False Certification Discharge cancels your federal student loan debt if you were unable to complete your program of study because your school falsely certified your eligibility to receive a loan. You may qualify for this type of discharge if, for example, your school signed your name on the loan application without your permission; certified your eligibility for a loan without considering whether you were able to benefit from the education; or misstated your job prospects after graduation.
What is the Unpaid Refund Discharge?
The Unpaid Refund Discharge is a type of student loan forgiveness that is available to borrowers who withdrew from school before completing any academic coursework. This discharge is also available to borrowers who never attended the school for which they received the loan.
How to Qualify for an Unpaid Refund Discharge
The Unpaid Refund Discharge is available to qualifying borrowers who withdrew from school but did not receive a refund of their tuition and fees. This type of discharge is also sometimes referred to as a false certification discharge.
To qualify, you must meet all of the following criteria:
-You withdrew from school on or after January 1, 1986
-You did not receive a refund of your tuition and fees
-The reason you withdrew is one of the following:
-You were called to active military duty
-A hospitalization made it impossible for you to continue your studies
-Your school closed while you were enrolled
-You became eligible for benefits under the Family and Medical Leave Act (FMLA)
If you think you might qualify for an Unpaid Refund Discharge, you can apply by submitting a completed and signed TAPD form to your loan servicer.
What Loans Qualify for an Unpaid Refund Discharge?
The unpaid refund discharge applies to Federal Family Education Loan (FFEL) Program loans, William D. Ford Federal Direct Loans (Direct Loans), and Federal Perkins Loans. If you received a Direct Consolidation Loan that repaid one or more of these types of loans, the unpaid refund discharge also applies to your Direct Consolidation Loan.
What is the Death Discharge?
The death discharge is the process by which your student loan debt is forgiven if you die. Your family or your estate will not be responsible for repaying your student loans if you die. If you have a co-signer on your student loans, they will also be released from their obligation to repay the debt if you die.
How to Qualify for a Death Discharge
A death discharge is a type of student loan discharge that cancels your remaining student loan balance if you die. To qualify for a death discharge, you must:
-Have a federal student loan
-Have your loan holder or co-signer notify the Department of Education or your loan servicer of your death
Your family members or beneficiaries are not responsible for repaying your federal student loan after your death. If you have a private student loan, check with your lender about their policies for death discharge.
What Loans Qualify for a Death Discharge?
The death discharge is a complete discharge of a qualifying borrower’s federal student loan debt. A qualifying borrower is defined as a student loan borrower who dies or who is totally and permanently disabled. To receive a death discharge, the lender or loan servicer must be provided with a certified copy of the death certificate. If the borrower was not the student on the loan, the co-signer may also qualify for a death discharge.
What is the Bankruptcy Discharge?
The Bankruptcy Discharge releases the debtor from liability for most debts. The debtor will no longer be required to make payments on discharged debts and creditors will not be able to take any action to collect the debt. The bankruptcy court will issue a discharge order after the debtor completes all required bankruptcy courses.
How to Qualify for a Bankruptcy Discharge
You must have filed for bankruptcy and received a discharge in order to qualify for student loan forgiveness. A discharge means that your debts are wiped out and you are no longer legally responsible for repaying them. You must also be able to demonstrate that you are unable to repay your loans due to a disability. You will need to provide documentation from a qualified medical professional attesting to your disability. If you meet these requirements, you may be eligible for a complete discharge of your student loan debt.
What Loans Qualify for a Bankruptcy Discharge?
In general, most federal student loans and private student loans qualify for a bankruptcy discharge. The following types of loans generally do not qualify:
-Federal Perkins Loans
-Direct PLUS Loans made to students
-Direct PLUS Loans made to parents
-Parent PLUS Loans
-Private student loans
When it comes to student loan forgiveness, there are a number of programs available that can provide relief for borrowers with disabilities. For example, the Public Service Loan Forgiveness program forgives the remaining balance on eligible federal student loans after 120 monthly payments have been made by borrowers who work in certain public service jobs. However, this program has strict eligibility requirements, and not all borrowers with disabilities will qualify.
There are also a number of state-level programs that offer student loan forgiveness for borrowers with disabilities. These programs typically have less stringent eligibility requirements than the Public Service Loan Forgiveness program, but they may only be available to residents of certain states. Borrowers should check with their state’s higher education agency to see if any programs are available.
Finally, private lenders may also offer student loan forgiveness programs for borrowers with disabilities. These programs are typically need-based, and borrowers should contact their lenders to see if they qualify.