Total and Permanent Disability Discharge program (TPD) helps borrowers suffering from a disability by offering a complete discharge on their federal loans. Unfortunately, most private lenders do not offer disability discharge for private student loans. The few that do are Sallie Mae, Wells Fargo, Discover, and New York Higher Education Services Corp.

If accepted for the disability discharge, you would receive complete loan forgiveness. You will no longer owe any money in either principal or interest. Best of all, the amount forgiven is not reported as income to the IRS as of 2018. This means you will not have to pay taxes on it and will not lose your eligibility for government programs like social security or Medicare.

Along with immediate discharge, you might also receive some of your money back. Lenders are required to return any money that you paid on your loan since the start of your disability.

To receive immediate disability discharge, qualifying borrowers must prove that they are totally and permanently disabled. You must have documentation from the Veterans Affairs Office, the Social Security Office, or your physician. The burden of proof is high and relies heavily on that official documentation. In general, you have to have been disabled for at least 60 months or expect to be disabled for at least 60 months to qualify. Those with disabilities expected to result in death are also eligible. Your loans must be eligible too. TPD discharge relieves you from repaying loans made under the:

• William D. Ford Federal Direct Loan Program
• Federal Family Education Loan Program
• Federal Perkins Loan Program

TPD discharge also relieves borrowers from their TEACH Grant service obligation

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You can start the application process online beginning our loan evaluation here.