There is no doubt that anyone who has served in the army and has gone to war to protect their country should be awarded financial assistance, especially if it is a veteran who has suffered terrible disabilities during the war. Fortunately, the Biden administration has now introduced legislation that can help discharge the student loans of disabled veterans. The contents of this article will aim at answering how disabled veterans can get their student loans paid for them by the federal government. Do disabled veterans get student loan forgiveness?
The process of this is called the total and permanent disability (TPD) discharge. There are currently three types of loans that will deem you eligible from having to repay the student loan.
The Three Types Of Acceptable Loans
- William D. Ford Federal Direct Loan
This loan enables confirmed students and parents from borrowing funds directly from the department of education, as well as other partaking schools. They include FFEL PLUS loans, FFEL consolidation loans, and subsidized and unsubsidized federal loans.
- Federal Family Education Loan
These are loans that derive from private lenders that are confirmed by the federal government. They include FFEL PLUS loans, FFEL consolidation loans, and subsidized and unsubsidized federal loans.
- Federal Perkin Loan
This is most known as the federal student loan, which is created by the receiver’s school, mainly for undergraduate and graduate students who can exemplify the need for financial assistance.
How Do I Qualify For A TPD Discharge?
There are currently three sources that you can use to provide documentation and qualify for a TPD discharge. These are the Social Security Administration (SSA), the U.S Department of Veterans Affairs (VA) or a physician. All three of these options have their own set of requirements for supporting documents which can reveal your acceptability.
If you are a veteran, you may be eligible for a TPD discharge from the VA department. But, you must document from the VA that shows that you are entirely disabled based on your employability rating or if you have a disability from service that has caused you to be disabled for life.
If you qualify for the SSA documentation process, you will be eligible for a TPD discharge. However, you must provide sufficient documentation that shows either your following scheduled disability review, which is at least five to seven years from your SSA disability review, or you can show a copy of your SSA notice of award.
Finally, suppose you decide to pick the physical certification to qualify for a TPD discharge. In that case, you can have a physician confirm that you cannot participate in any form of activities due to obvious mental or physical disabilities that can result in either the death of an individual or can be expected or have lasted for at least 60 continuous months.
What Do I Need To Do To Apply For A TPD Discharge?
You first need to visit disabilitydischarge.com so that you can apply for a TPD discharge application. This application is required to be filled out and sent directly to the TPD discharge servicer called Nelnet. Do note that your TEACH grant service obligations and federal student loans will be automatically added to the TPD discharge application.
In addition, if you would like someone else who is a relative to assist you with your TPD application process, then you and your representative must fill out the applicant representative designation form. As a result, our administrator Nelnet is not able to work with your representative until all the necessary forms mentioned above are received and processed successfully.
What Happens Once My TPD Application Has Been Submitted?
Once you have successfully submitted your application, Nelnet will reach out to your email and explain to you the process for the review to be completed. This procedure should not require you to make any sort of payments on your loans either before or after the event is complete. The TPD being approved will entirely depend on the type of documentation you submitted.
Conclusion
Veterans can qualify for a student loan forgiveness, which is also called a total and permanent disability discharge (TPD). To be allowed a TPD discharge, you must first make an application to Nelnet, who is the representative of the TPD application process, according to the documentation that you have provided, you will then be provided with an answer shortly. It is wonderful that governments in countries such as America provided financial support to disabled army veterans that have dedicated years of their lives to protecting and serving the nation.
Frequently Asked Questions
- What Education Benefits Are Veterans Entitled To?
Firstly, you could be entitled to an education benefit program that is known as the Post 9/11 Bill. This is for. Veterans that have served post-September 10, 2001. Secondly, you may also be suitable to qualify for payment of your tuition fees if the costs are more than the in-state tuition charges, or if your tuition fees are more than local or foreign education institutions.
- Will I Have To Pay Any Tax If My Student Loan Is Discharged Due To TPD?
Whether you must pay a federal tax or not will depend on when you received your TPD discharge. If you received your discharge before January first, 2018, then the loan may be considered under an internal revenue service rule that is for federal tax purposes. However, if you received your discharge from the first of January 2018 to the 31st of December 2025 you are free from paying the interest and your loan won’t be considered for federal income tax.
- What Happens If My TPD Is Rejected?
In the unfortunate event of your TPD being rejected, you will be notified promptly of the decision of your TDP and what led to the circumstances of it getting rejected. If you provide new information, we may re-evaluate the final decision and get back to your with an outcome as soon as possible.
