What Disabilities Qualify for Student Loan Forgiveness?

• Federal student loans can be completely discharged if you have a total and permanent disability that prevents you from working, documented through Social Security disability benefits, VA determination, or physician certification.

• Qualifying disabilities include physical conditions (like MS, cancer, heart failure), mental health conditions (like severe PTSD or bipolar disorder), and other chronic conditions that significantly limit your ability to work for at least 60 months.

• The application process is free and can be done online at disabilitydischarge.com, and once approved, your loans will be placed in forbearance (no payments required) while your application is reviewed – typically taking 1-3 months.

Managing student loan debt is stressful, but when a disability limits your ability to work, it can feel overwhelming. Thankfully, the Total and Permanent Disability discharge program is designed to help. It offers forgiveness for federal student loans if a long-term or permanent disability prevents you from earning a living.

If your condition makes it hard to keep up with payments, this guide will help you determine if you qualify. Disabilities like neurological disorders, mental health challenges, autoimmune conditions, and sensory impairments may make you eligible.

Here’s what we’ll cover:

• What disabilities qualify for TPD discharge?

• How to apply and what supporting documents you’ll need from your doctor, the Social Security Administration (SSA), or the Department of Veterans Affairs (VA).

• How the process works, and what happens if you start working again after forgiveness.

Not sure if your condition qualifies? We’ll break down the most common disabilities covered by the program so you have a clear path toward relief.

Related

• Can a Parent PLUS Loan Be Forgiven Due to Disability?

• ‍Am I Eligible for Student Loan Forgiveness at Age 65?

Disabilities that qualify for loan forgiveness include both physical and mental impairments that make it difficult or impossible to work.

If a condition limits your ability to perform daily tasks or maintain substantial employment—whether it’s due to neurological disorders, mental health challenges, autoimmune diseases, or sensory impairments—you may be eligible for forgiveness.

Here’s a breakdown of common disabilities by category to help you understand if you might qualify:

1. Neurological Conditions

Neurological conditions can severely affect motor skills, cognition, and daily life, potentially qualifying for TPD discharge.

2. Mental Health Conditions

Severe mental health conditions often prevent individuals from maintaining employment, potentially qualifying for TPD discharge.

3. Autoimmune Conditions

Autoimmune diseases often cause chronic pain and fatigue, limiting the ability to work, and can qualify for forgiveness under TPD.

4. Cancer and Blood Disorders

Cancer and certain blood disorders can severely affect work capacity, making individuals eligible for student loan forgiveness. Find more details in this guide: Cancer and Student Loans Forgiveness

5. Cardiovascular and Respiratory Conditions

Conditions that impact the heart and lungs can prevent individuals from working and may qualify for forgiveness.

6. Endocrine/Metabolic Conditions

Endocrine and metabolic disorders often impair health and work capacity, making individuals eligible for forgiveness.

7. Musculoskeletal Conditions

Conditions affecting the muscles and bones can cause chronic pain and mobility issues, potentially qualifying for loan forgiveness.

8. Sensory Disabilities

Severe vision or hearing impairments can limit the ability to work, qualifying borrowers for forgiveness under the TPD program.

9. Infectious Diseases

Certain infectious diseases can significantly impact work capacity, qualifying individuals for loan forgiveness.

Federal student loan borrowers with the following types of loans can qualify for a TPD discharge:

• Direct Loans under the William D. Ford Federal Direct Loan Program

• Federal Family Education Loans (FFEL)

• Federal Perkins Loans

Borrowers with a TEACH Grant service obligation can also qualify for discharge.

Private loans aren’t eligible for TPD discharge. But, some private lenders may offer loan discharge options if the borrower or co-signer becomes totally and permanently disabled. They often leave the other party—either the borrower or the co-signer—responsible for the remaining balance.

The TPD discharge program forgives federal student loans for individuals who can’t work due to a severe disability. Once you prove your disability, your loans are forgiven, and no further payments are required.

Proving Your Disability

To qualify, you’ll need to provide proof of your total and permanent disability through one of the following methods:

• Social Security Disability Benefits: If you receive Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) with an SSA disability review period of at least five to seven years, this documentation can be used.

• Veterans Affairs Determination: Veterans who are unemployable due to a service-connected disability can use their VA determination to qualify.

• Medical Certification: A licensed healthcare provider (doctor, nurse practitioner, or physician’s assistant) can certify that your physical or mental impairment prevents you from working for at least 60 months or is expected to result in death.

You can apply for TPD discharge by following these steps:

• Online Application: Visit disabilitydischarge.com and use the online application wizard. This is the quickest and easiest way to apply.

• Printed Application: If you prefer to apply by mail, you can print the application from the website, complete it by hand, and mail it. You can also request an application by emailing DisabilityInformation@Nelnet.net or calling 1-888-303-7818.

• Mailing Your Application: Send your completed application to:U.S. Department of Education – TPD Servicing
  P.O. Box 87130
  Lincoln, NE 68501-7130

TPD Discharge Timeline

Once you submit your application, your loans will be placed in a 120-day administrative forbearance. During this time, no payments are required while your application is under review. The typical review process takes 1-3 months.

If there are any delays in receiving your TPD discharge application, the administrative forbearance can be extended indefinitely until a final decision is made. Nelnet, the servicer managing TPD applications, will notify you once they have reached a decision.

Most borrowers are subject to a three-year monitoring period after their loans are discharged (this doesn’t apply to veterans). As of July 2023, you no longer need to report your income during this period, but a few key conditions still apply:

• Don’t take out any new federal loans during the post-discharge monitoring period, or your discharged loans could be reinstated.

• If your SSA disability status changes and you’re no longer considered permanently disabled, your loans may also be reinstated.

Veterans discharged due to a service-connected disability are exempt from these restrictions and can work without risking their loan forgiveness.

Veterans with a service-connected disability may qualify for student loan forgiveness through the TPD discharge program, offering significant relief by eliminating the need to repay federal student loans. Here’s what you need to know as a veteran.

TPD Discharge for Veterans

Veterans deemed unemployable due to a service-related disability automatically qualify for student loan forgiveness under the TPD discharge.

Related: VA Student Loan Forgiveness for Employees

If the U.S. Department of Veterans Affairs issues a Notice of Award confirming your total and permanent disability, you’re eligible for the discharge without applying.

• No Physician Certification: Unlike other borrowers, veterans don’t need certification from a doctor or Social Security documentation. The VA works directly with the Department of Education to confirm your eligibility.

• No Monitoring Period: Veterans aren’t subject to the three-year monitoring period, meaning they can return to work or earn income without risking loan reinstatement.

Additional Benefits for Disabled Veterans

Veterans with a service-connected disability receive additional advantages through the TPD discharge and other loan forgiveness options:

• Automatic Discharge Process: Since 2019, veterans with a total and permanent disability determination from the VA have been automatically identified for TPD discharge, removing the need to apply or submit paperwork.

• No Income Restrictions: Veterans can earn income without worrying about income limits or losing their loan forgiveness.

• Clarification on 50% Disability: There isn’t specific forgiveness for veterans who are 50% disabled, but those deemed unemployable due to a service-related disability qualify for full forgiveness through the TPD discharge.

• Discharge for Family Members: In some cases, dependents of disabled veterans, such as children with Parent PLUS loans, may qualify for forgiveness. Check with the VA or Department of Education for more details.

• Compassionate Allowance: Borrowers who receive disability benefits through Social Security’s Compassionate Allowance program may be eligible for expedited loan forgiveness.

If you’re not eligible for TPD discharge, other federal student aid programs might still offer relief. Here are some options to consider:

• Public Service Loan Forgiveness (PSLF): If you work in public service or for a nonprofit, you could qualify for loan forgiveness after making 120 qualifying loan payments. [Learn more about PSLF here].

• Income-Driven Repayment (IDR) Forgiveness: Borrowers on an income-driven repayment plan may have their remaining loan balance forgiven after 20 or 25 years, depending on the plan. [Find out more about IDR forgiveness here].

• Borrower Defense to Repayment Discharge: If your school misled you or violated higher education laws, you might qualify for loan forgiveness through Borrower Defense to Repayment. [Learn about Borrower Defense to Repayment here].

• Student Loan Bankruptcy: If you have a partial disability or other challenges that affect your ability to engage in substantial gainful activity but don’t meet the TPD threshold, recent updates to student loan bankruptcy rules under the Biden Administration may provide relief. [Learn more about student loan bankruptcy options here].

If TPD isn’t the right fit for you, one of these programs might be. Explore your options to see if another path to forgiveness through federal student aid suits your situation.

If a disability prevents you from working, the Total and Permanent Disability discharge can help eliminate federal student loan debt.

Qualifying disabilities include severe physical, mental, and chronic conditions that limit work capabilities, verified by SSA benefits, VA determinations, or physician certification. Once approved, this free program requires no further payments.

If you’re uncertain about your eligibility or need help with the application process, our team of student loan experts is here to guide you.

Book a call with one of our experts today to get the support and clarity you need to move toward financial peace of mind.