Nov 4, 2014

Disability Discharges Of Federal Student Loan Debt Made Less Difficult

     Federal student loans may be collected out of Social Security benefits. However, federal student loan debtors can qualify for a "total and permanent disability" discharge of their debts. An increasing number of Social Security disability recipients have student loan debts collected out of their benefits. A new Department of Education website now includes information on how to get a "total and permanent disability" discharge of federal student loan debt and there's an online application. Until recently, the Department of Education didn't even have a paper form specifically for applications for "total and permanent disability" discharge!
     I still say that the Department of Education and the Social Security Administration should do a data match and the Department of Education should summarily discharge student loan debts for Social Security disability recipients whom Social Security puts in the category "Medical Improvement Not Expected" which the Department of Education accepts as being "total and permanent disability." When this can be done automatically, why put everyone, including the agency, through the trouble of an application process?


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Anonymous said...

No such action should be taken. Such action will ruin your credit score if you are trying to pay bills on time. It should be up to the individual if they want the loan dismissed and their respective credit ruined. I have worked hard to pay my bills, and am going to pay my student loan, as hard as it is. I may need my credit someday.

Anonymous said...

Great article. Thanks for the info, you made it easy to understand. BTW, if anyone needs to fill out a “Discharge Application Form ”, I found a blank fillable form here: This site PDFfiller also has some tutorials on how to fill it out and a few related legal documents that you might find useful.

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