RESOURCES
Disability Discharge
If you are permanently disabled, you might qualify for a Total and Permanent Disability (TPD) loan discharge. A discharge would relieve you from having to repay your federal student loan balance.
I am disabled, can I discharge my federal student loans?
You may be able to discharge your federal student loans due to a permanent disability. Here are some things to know:
- You can only discharge federal student loans and TEACH grants. Private loans do not qualify.
- You must be permanently disabled and unable to engage in “substantial gainful activity”, which basically means you have a physical or mental disability that prevents you from earning a livable wage.
- You must certify your disability through a medical professional, the U.S. Department of Veterans Affairs (VA), or the Social Security Administration (SSA).
- Your disability must have lasted or is expected to last 60 continuous months (5 years) or can be expected to result in death.
- You have to submit an application with supporting documentation. The application is actually short and simple and there is no downside to applying.
- Nelnet is the only student loan servicer processing Total and Permanent Disability (TPD) discharge applications at this time. Nelnet is contracted by the U.S. Department of Education to process TPD applications.
I think I qualify, how do I start the process?
- You can learn more about the application and process here.
- To get the latest application, visit the studentaid.gov form library, call Nelnet at 888-303-7818 or email .
Tip: You can authorize a representative to help you with the application. This can be someone you trust, an advocate or attorney.
What happens after I apply?
- Your payments will be suspended while your application is reviewed.
- If you are approved through a medical certification or Social Security you will be placed in a three year post-discharge monitoring period.
- The monitoring period does not apply if you certify through the VA and you can’t work due to a service-connected disability.
- If you don’t meet the monitoring period requirements, your loans will be reinstated and you will be required to make payments.
Note: Borrowers receiving a TPD Discharge through a medical certification cannot take out new federal loans or Teach Grants during the 3-year post-discharge monitoring period.
Can I discharge Parent PLUS loans due to disability?
In general, parents with PLUS loans may apply for discharge based on their own disability, but not the disability of their children. If both parents obtained a Parent PLUS loan, each parent must meet the disability requirements to discharge their respective loan.
More Detailed Guidance Based on Your Certification Type
Medical Professional Certification ➲
A U.S. licensed medical professional can certify your TPD application.
- First, it must show that you are “unable to engage in any substantial gainful activity.” This means that you can’t perform work for pay that involves doing significant physical or mental activities, or a combination of both.
- Secondly, the medical professional must confirm that your inability to engage in substantial gainful activity is because of a disability that:
- can be expected to result in death,
- has lasted for a continuous period of at least 5 years (60 months), or
- can be expected to last for a continuous period of at least 5 years (60 months).
Types of medical professionals that can provide this certification:
- Doctors of Medicine (MDs)
- Doctors of Osteopathy
- Nurse Practitioners
- Physician’s Assistants
- Certified and State Licensed Psychologists
U.S. Department of Veterans Affairs (VA) Certification ➲
If the VA awarded you a disability determination because you
- have a service-connected disability that is 100% disabling
- OR are totally disabled based on an individual unemployability rating.
You’ll need to provide a document that shows when the VA awarded you the disability determination.
Social Security Administration (SSA) Certification ➲
If you’re eligible for Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) benefits, you need to provide either a copy of your SSA notice of award or a Benefits Planning Query.
Just because you receive SSDI or SSI benefits doesn’t mean you automatically get a TPD discharge.
Your SSA notice of award or a Benefits Planning Query must show one of the following:
- Your next continuing disability review has been scheduled within 5 – 7 years from the date of your last SSA disability determination.
- Your next continuing disability review has been scheduled at 3 years.
- You have a medical onset date for SSDI or SSI of at least 5 years before you apply for TPD discharge.
- You qualify for SSDI or SSI based on a compassionate allowance.
- You are currently receiving SSA retirement benefits, and immediately before you qualified for retirement benefits, you met one of the requirements described in 1-4 above.
Expanded categories to get TPD through Social Security:
- If a borrower receives SSDI or SSI based on disability and the next continuing disability review is more than 3 years away (previously 5-7 yrs).
- If the condition is categorized as Medical Improvement Not Expected (MINE), Medical Improvement Possible (MIP) or Compassionate Allowance.
- If the borrower can establish the condition existed for 5 years prior to applying for discharge or has been receiving SSDI or SSI based on disability for 5 years before applying for discharge.
What’s next?
Read the Total and Permanent Disability application carefully. Gather the information you will need to submit with your application. Contact us if you have questions, or if you need help applying.
