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Total and Permanent Disability
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Federal student loan borrowers, co-makers, and endorsers being pursued for collection may be eligible for a total and permanent disability (TPD) discharge if they are determined totally and permanently disabled after their loans were made.
TPD Eligibility Requirements as of July 1, 2010
Some important changes to TPD went into effect as of July 1, 2010, that may impact your eligibility for a TPD discharge. As of July 1, 2010, you must do one of the following to qualify for TPD:
- The secretary of veterans affairs must determine you to be unemployable due to a service-connected disability.
- Your doctor must certify that you are unable to engage in substantial gainful activity due to physical or mental impairment. Your impairment must be expected to result in death, to last for a continuous period of at least 60 months, or has already lasted for a continuous period of at least 60 months.
Secretary of Veteran Affairs-Certified TPD
If the secretary of veteran affairs determines you are unemployable due to a service-connected disability, you must submit a loan discharge application along with documentation from the Department of Veteran Affairs (VA) to your lender.
Your eligibility will be determined by your loan holder and ED. If you are approved for the discharge, you will not be placed in a post-monitoring period and your loan will be discharged.
Doctor-Certified TPD
There are some important things to remember when applying for a TPD discharge.
- Your loan holder must receive your doctor-certified application within 90 days of your doctor’s certification.
- Your eligibility will be determined by your loan holder, guarantor (if you have loans through the Federal Family Loan Program), and ED.
- If you are approved for TPD discharge, ED will place you on a 3-year post-monitoring period.
During this 3-year post-monitoring period, ED may reinstate your obligation to repay your loan if you fail to meet certain criteria, such as you:
- Receive a new TEACH grant or federal student loan.
- Earn income in excess of 100% of the federal poverty guideline based on a family of 2.
- Do not return any federal student loan disbursements or TEACH grant payments received after the physician certification date (on loans/grants that have been certified prior to the physician certification) within 120 days after the disbursement.
TPD Requirements Prior to July 1, 2010
To qualify for TPD discharge prior to July 1, 2010, you would have needed to do one of the following:
- Have your doctor certify that you cannot work and earn money due to an injury or illness that is expected to continue indefinitely or result in death.
- Have the secretary of veteran affairs deem you unemployable due to a service-connected disability.
If you were determined totally and permanently disabled by your doctor, the U.S. Department of Education (ED) would have placed you on a 3-year conditional discharge period. After that period, you would be eligible to have your loan discharged.
If you were a totally disabled veteran, you would have your loan discharged without being placed on the 3-year conditional period.
Please contact American Student Assistance® (ASA) directly for more information or visit Disability Discharge—which is run by ED’s TPD servicer, Nelnet.
