What To Know About Student Loan Debt And Your Disability
Posted on: 18 July 2017
Your heart and mind may have been in the right place when you took on that student loan; education is a goal worth pursuing. Often, the leftover loan obligation makes finances difficult even after landing that dream job. If you are suffering from a medical or mental condition that makes it impossible for you to attend to your job, you can begin to suffer in many ways, however. The good news is that if you get approved for Social Security disability payments, you may also be able to get your student loan debt forgiven. Read on for more information about the Total and Permanent Disability (TPD) program.
You must meet more stringent guidelines.
As you already know, it's not easy to get Social Security benefits and it can be a long and harrowing process between application date and approval. The Social Security Administration (SSA) requires that you be unable to work at your job for at least one year, or that you might not be able to work at your job for at least one year in the future. The TPD program, on the other hand, requires that you be unable to work at your job for a whopping 60 months (which equates to about 5 years). One exception to this 5-year waiting period is if you qualify for a special category of SSA disability, the Medical Improvement Not Expected program. This program targets permanent and terminal medical conditions, and with it, you can qualify for the TPD program right away.
Not all loans will meet the standards.
The following list of loans qualify under the TPD program:
- TEACH (the Teacher Education Assistance for College and Higher Education Grant Service).
- FFEL (the Federal Family Education Loan).
- Perkins Loans.
- William D. Ford Federal Direct Loan Program
Other points to consider.
- Many people have more than one student loan, and if you do you must submit a separate application for each (qualifying) loan.
- There are income limits for the TPD program, just like the SSA program that you are already qualified for.
- You may not be able to qualify for another student loan in the future.
- Collection activity on any arrears loan payments will cease once your application is submitted, but this hold could expire if you fail to comply with all application requirements within 120 days.
To take advantage of this opportunity for loan forgiveness, you must first get your Social Security benefits approved. Talk to a Social Security law office like Horn & Kelley, PC Attorneys at Law if you have been turned down for those benefits.Share