It is almost impossible to think about attending a colleague without thinking about student loans. Since a loan of any kind has an impact on our lives for many years, and it is vital not to do something that has a long-lasting effect on our lives without thinking about it for a while. You know you will have to work extra hard to pay off your loans after signing up. But what happens if you can not repay student loans because something serious has happened to you? What if you have a terminal illness or get permanent disability? In this case, you can qualify for a Total and Permanent Disability Discharge for disability via the U.S Department of Education.
If you are trying to compensate for your student loans because of permanent disability, you might be eligible for loan forgiveness scheme. The U.S education department has come up with the Total and Permanent Disability Discharge program to allow people who are not able to return their loans due to disability apply for loan forgiveness. To get TPD discharge or your TEACH grant obligation discharged because of your disability, you have to demonstrate your disability to the Education Department. It is often defined as a medically determinable physical or mental disability that limits you from taking part in a substantial activity.
What does it mean to have my student loans discharged?
When you qualify for Total and Permanent Disability Discharge, this means that you will not have to pay back the debt you owe. However, because it can take quite some time for the discharge process to be done, you may be responsible for making monthly payments until it has been approved. In most cases, once you contact the Department of Education and request an application for Total and Permanent Disability Discharge, they will verify that your loans are eligible and then suspend payment requirements for 120 days.
How do I check if I am eligible?
Step 1. Fill in an application form
There are three different methods to begin and finish your discharge application for Permanent Disability Discharge: Start an application online. Student Loans Resolved website allows you to start your online application giving you options to start from scratch with a blank form or fill in the details as well as requesting an application via phone or email.
Step 2. Show total disability discharge – The next step depends on how you intend to show your disability. Here are your options:
➢ Veterans Affairs– showing documentation from the US Department of veteran aka service-related disability
➢ Social security award – you can offer a social security administration notice of award. The notice has to state that you are next scheduled disability reporting will be within 5 to 7 years period from your current disability determination day.
➢ Physical certification – you can give a certification from your physician to show your disability. Your physician has to certify that you are incapable of engaging in gainful activity due to a medically obvious physical or mental disability.
Step 3. Submit your application and wait for the feedback.
If your application for Total and Permanent Disability Discharge is approved, they will notify you about it. After that, they will contact your lender to refund the money if you have made any after the date of being disabled. You can learn more about the terms and conditions by reading our previous article.
Important note: To be eligible for TPD Discharge you will be in a three year monitoring period during which your financial situation will be closely watched. If you have over a specific amount of income during this period, you will be obliged to repay the loan.
Things to avoid when applying:
Nowadays many people struggle to repay their debts. Most of the time, we hear about Total and Permanent Disability Discharge that help student loans disappear. While student loan programs are useful, loan forgiveness scams are also common and should be kept away from. Needless to say that some of the people try to get profit from this situation which results as an additional challenge for others.
➢ Response time
You need to understand that the response from the Education Department might take quite some time to see if you qualify for a Total and Permanent Disability Discharge. If someone tells you otherwise, they are quite likely a scam trying to get your money. Student loan forgiveness programs require some time, sometimes even from 10 to 25 years depending on the forgiveness program. Sometimes it is tough to be informed of the scammers as they are expert in attracting inexperienced borrowers via commercials. The best is to investigate the company you apply with to avoid stduent loan scams.
➢ Advance payments
If you do not want to lose money, try and avoid paying upfront fees. Majority of scammers claim that they will help you solve the problem by borrowing in advance. Most of the time thought the amount they want is not small. Before completing such payment, you have to know the required small charge is not your solution; they take it for their service. Always ask for documents to prove that they need that payment in the first place.
➢ Eligibility for Total and Permanently Disability Discharge
Not everyone can be eligible for TPD Discharge. To be eligible for Permanent Disability and Student Loans forgiveness you need to be qualified under some conditions. If you have been promised by companies to wipe out your private loan debt using the forgiveness program, it could be another loan forgiveness fraud.
Top tips to follow:
- Always keep a copy of everything that needs to be signed by a doctor. If your doctor faxed a copy to a loan service, you must also remember to send it by mail.
- Follow the deadlines by the US Department and other services.
- Try again until it works; do not give up! If your first application for Total and Permanent Disability Discharge does not get approved, try it again.
- If one of the applications do not work, try applying for economic difficulties.
At Student Loans Resolved complex loan applications are simplified. It is important to remember that each application is considered individually, therefore, include as much information about yourself as you can. If your application gets denied, do not worry you can appeal the determination of your application. You will need to provide additional information that you believe will affect the determination of your application. This information must be submitted within a year of the date you were denied. If you wait for longer than a year, you will have to fill out another application and submit it together with your additional supporting information. Many factors will impact whether or not you qualify for the termination of Total and Permanent Disability Discharge. The best way is to speak to one of the loan discharge specialists who can help you with the right guidance with your application.
Finally, dealing with student loans on top of a long term disability can be stressful, but there are options to make it easier. Before you apply for loan forgiveness, make sure you meet the requirements and are prepared for a potential tax bill. If you qualify for Total and Permanent Disability Discharge you are no longer obligated to make loan payments.