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Student Loan Discharge and Social Security Disability Benefits

CaveyLaw.com > Social Security Disability (SSD)  > Student Loan Discharge and Social Security Disability Benefits

Student Loan Discharge and Social Security Disability Benefits

The United States Department of Education has issued final regulations to remit a “total and permanent disability” (TPD) discharge based on a bar Social Security Notice of Award for Social Security Disability Insurance (or SSDI) 77freg6608 (November 1st, 2012).

Federal student loan borrowers can have their debt discharged if they have a total and permanent disability and the Notice of Award on it’s own will now suffice as proof of the borrowers TPD.

If you do receive a discharge on this basis, you will be subject to a three year discharge review by the Department of Education and if SSA finds that you are no longer disabled, a loan repayment obligation will be reinstituted.

This regulation will be in effect July 1st, 2013.

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