Disability discharge form student loan 2025

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If youre totally and permanently disabled, you may qualify for a discharge of your federal student loans and/or Teacher Education Assistance for College and Higher Education (TEACH) Grant service obligation.
Student loan cancellation programs Borrowers with federal Perkins loans can have up to 100% of their loans canceled if they work in a public service job for five years. In many cases, approved borrowers will see a percentage of their loans discharged incrementally for each year worked.
Generally, if you are approved for, and currently receiving Social Security Disability Insurance (SSDI) benefits, then you should be automatically identified through an existing data match with the SSA and have any qualifying student debt automatically forgiven.
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For discharge other than borrower defense, contact your loan servicer, and theyll guide you as to how to apply. If you have a Federal Perkins Loan, your loan can be discharged based on permanent disability, bankruptcy, or death. Contact the school that made the loan or the loan servicer administering the loan.
If my federal student loan is discharged because I am disabled, will it affect my Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) benefits? Discharge of your federal student loan will not affect the benefits you receive.
As of May 2023, around 492,000 borrowers have gotten loan forgiveness through TPD discharge. And there are multiple ways to qualify! To get TPD discharge, you must show that you have a disability that severely limits your ability to work, now and in the future. This can be a physical or a mental disability.
Your loan can be discharged only under specific circumstances, such as school closure, a schools false certification of your eligibility to receive a loan, a schools failure to pay a required loan refund, or because of total and permanent disability, bankruptcy, or death.
You may receive a letter at some point in the future letting you know that the Department thinks you are eligible for a TPD discharge based on the information it has from the VA or SSA. The Department of Education may then automatically cancel your loans under the TPD program without you having to apply.

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