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.