Are you 100% totally and permanently disabled, you may qualify to have your federal student loans canceled!
You can show proof that you qualify for total and permanent disability (TPD) in three ways:
Documentation from the Social Security Administration (SSA)
Documentation from a physician
Documentation through the U.S. Department of Veterans Affairs (VA)
Documentation from the Social Security Administration (SSA):
You can qualify for a TPD discharge if you receive Social Security Disability Insurance or Supplemental Security Income by:
providing a copy of your SSA notice of award or Benefits Planning Query showing that your next scheduled disability review will be 5-7 years or more from the date of your last SSA disability determination.
Documentation From a Physician:
A doctor of medicine (M.D.) or doctor of osteopathy/osteopathic medicine (D.O.) who is licensed to practice in the United States can certify if you are unable to engage in any substantial gainful activity due to a physical or mental impairment. Substantial gainful activity means you are 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 at least 60 months; or
Can be expected to last for a continuous period of at least 60 months.
Documentation through the U.S. Department of Veterans Affairs (VA):
If you’re a veteran, you can qualify for a TPD discharge by providing documentation from the VA that shows determination due to a:
Service-connected disability that is 100 percent disabling; or
Total disability based on an individual unemployability rating.
Apply for Discharge (Cancellation):
You’ll need to complete a TPD discharge application and send it, along with any required documentation of your eligibility for discharge, to Nelnet, the TPD discharge servicer. You can start your online application here: https://secure.disabilitydischarge.com/registration.
After Nelnet receives your application, they will explain the process for the review of your application. While your application is being reviewed, you won’t be required to make any payments on your loans. You can contact Nelnet about your application here: disabilityinformation@nelnet.net or by phone at 1-888-303-7818 Monday–Friday from 7 a.m.–2 a.m. Eastern time (ET), and Saturday from 8 a.m.–7 p.m. ET. You can also visit the Federal Student Aid website for more information about TPD discharge here: https://disabilitydischarge.com/
Note: If you receive TPD discharge between Jan. 1, 2018 to Dec. 31, 2025, the discharged loan amount won’t be considered income for federal tax purposes. However, you will need to check with your state as loan amounts discharged due to TPD, may still be considered income for state tax purposes. You may want to consult with your state tax office or a tax professional before you file your state tax return.
What if you don’t qualify for TPD Cancellation?
If you don’t qualify for TPD discharge or you are denied and still need relief from your student loans, you may still be able to get relief through federal forgiveness programs and/or income-driven repayment plans. Continue on to Chipper to explore your repayment and forgiveness options.