Forgiving Federal Student Loans and Social Security Disability Benefits

Dec 04

The U.S. Department of Education can forgive certain types of federal student loans if theU.S. Department of Education determiners that the borrower is “Totally and Permanently Disabled” (TPD). The receipt of social security disability benefits does not automaticallyestablish a TPD because the U.S. Department of Education’s definition of a TPD is different than SSA’s definition of “disabled”. Although not controlling, an award of disability benefits is proof to establish a borrower’s TPD. If a social security disability recipient’s Notice of Award includes information about a Continuing Disability Review (CDR) schedule, applying for a TPD should be a relatively simple process. A request for the U.S. Department of Education to consider forgiving a student loan is made by completing an application. To obtain an application or information about ways of establishing proof of a TPD, visit the U.S. Department of Education’s online resource center.