U.S. Department of Education to Forgive the Student Loan Debt of People with Disabilities

April 15, 2016

In 2012, the federal government created a process to let people with disabilities apply to have their federal student loans forgiven, so that they wouldn't need to be repaid. This process is called the Total and Permanent Disability (TPD) Discharge. The program's FAQ page explains the three-year period your disability may be monitored before your loans are forgiven, and the taxes you may have to pay after the loans are forgiven.

Over the years, many people have not realized they could apply for the TPD Discharge. Now, the U.S. Department of Education (DOE) is collaborating with the Social Security Administration (SSA) to identify federal student loan borrowers who also get benefits from SSA due to their disabilities:

"Beginning on April 18, 2016, borrowers who were positively identified in the match will receive a customized letter explaining that the borrower is eligible for loan forgiveness and the simple steps needed to receive a discharge. Unlike other borrowers, those identified through the data match will not be required to submit documentation of their eligibility. Instead, they are eligible for a streamlined process by which they simply sign and return the completed application."

Read the full U.S. Department of Education announcement about how they will identify people who might qualify to have their debt forgiven.

Learn more about whether you might qualify to have your student debt forgiven or call 1-888-303-7818 to speak with a customer service representative.