Disability Student Loan Forgiveness Guide
On Dec. 9, 2025, the U.S. Department of Education announced a proposed settlement agreement that would end the Saving on a Valuable Education (SAVE) Plan. The settlement must be approved by the court before it can be implemented. Borrowers can use the Loan Simulator to begin exploring other repayment options. For more information, visit StudentAid.gov/courtactions.
Managing student loan debt can be especially challenging when a disability affects your ability to work or earn a steady income. Fortunately, there are federal programs designed to ease this burden by offering loan forgiveness to eligible borrowers.
Read on to learn how disability student loan forgiveness works, who qualifies, and the steps you can take to apply with confidence.
What Is Total and Permanent Disability Student Loan Forgiveness?
The Total and Permanent Disability (TPD) Discharge program provides complete forgiveness for eligible student loan borrowers who have Direct Loans, Federal Family Education Loans (FFELs), and federal Perkins Loans.
You can visit the Federal Student Aid website for more information on the student loan forgiveness disability, what disabilities qualify for student loan forgiveness, and the Total and Permanent Disability process.
What Is Total and Permanent Disability?
Total and permanent disability is a condition in which an individual is no longer able to perform their job due to injuries or a disorder or a disease and may never be able to work again.
It’s important to know that a person will probably not qualify for permanent total disability benefits until the associated medical condition is fixed and stable. As long as there are additional, curative treatment options available, or a doctor thinks you may improve over time, an insurance company will not call a person “permanently and totally disabled.”
What disabilities qualify for student loan forgiveness? Some examples of the most common injuries and disorders that are considered a permanent disability include:
Amputation
Cardiovascular or respiratory disease
Hearing or vision loss
Nerve damage
Musculoskeletal disorders
How Can You Prove that You Are Totally and Permanently Disabled?
To get student loan forgiveness for the disabled, you’ll have to prove your case. You need to qualify for a TPD discharge of student loan repayment, so you must complete and submit a TPD discharge application, along with documentation showing that you meet the Department of Education’s requirements for being considered totally and permanently disabled.
You can show that you qualify for a TPD discharge by providing documentation from one of three sources:
Doctor’s Certification
The U.S. Department of Veterans Affairs (VA)
The Social Security Administration
Doctor's Certification
You qualify for a TPD discharge by having a physician or other qualified medical professional certify on the TPD discharge application that you are unable to engage in any substantial gainful activity due to a physical or mental impairment that
can be expected to result in death,
has lasted for a continuous period of at least 60 months, or
can be expected to last for a continuous period of at least 60 months.
“Substantial gainful activity” is a level of work performed for pay or profit that involves doing significant physical or mental activities, or a combination of both.
The physician or medical professional who certifies your TPD discharge application must be a doctor of medicine (M.D.), a doctor of osteopathy/osteopathic medicine (D.O.), a nurse practitioner (NP), a physician assistant (PA), or a certified psychologist at the independent practice level.
VA Documentation
If you’re a veteran, you can qualify for a TPD discharge by providing documentation from the VA that shows you have received a VA disability determination because you have a service-connected disability that is 100% disabling, or are totally disabled based on an individual unemployability rating.
Social Security Administration Documentation
If you’re eligible for Social Security Disability Insurance or Supplemental Security Income, you can qualify for a TPD discharge if you provide a copy of your SSA notice of award or Benefits Planning Query showing that your next scheduled disability review will be five to seven years or more from the date of your last SSA disability determination.
Applying for Student Loan Discharge
You need to complete a TPD discharge application and send it, along with any required documentation of your eligibility for discharge, to Nelnet, the TPD discharge servicer. The TPD discharge application applies to all of your federal student loans. Nelnet assists the DOE in administering the TPD discharge process and communicates with borrowers.
How Long Do You Wait After Applying?
It typically takes less than 30 days to complete the Department of Education’s review of the TPD discharge application. If your discharge application is incomplete or if a physician’s response is held up, it can cause delays in the review process. In the case of a delay, Nelnet will notify you via mail.
Post-Discharge Monitoring
Your obligation to repay your loans will be reinstated if, at any time during the three-year post-discharge monitoring period, you receive:
Annual earnings from employment that exceed the poverty guideline amount for a family of two in your state, regardless of your actual family size;
A new federal student loan under the Direct Loan Program;
Another disbursement (payment) of a Direct Loan that was first disbursed (paid out) before your discharge was approved, and the new disbursement has not been returned to the loan holder or to DOE within 120 days of the disbursement date; or
A notice from the SSA stating that you are no longer disabled, or that your next scheduled disability review will no longer be five to seven years from the date of your last SSA disability determination.
Resources for Those With Disabilities Who Don't Qualify for TPD Discharge
If you don't meet the requirements for a TPD discharge, but you still have difficulty keeping up with your monthly federal student loan payments because of your disability, there are assistance programs available that can help:
Medicare can help cover your medical costs if you have an eligible disability.
Medicaid can help cover your medical costs if you have a low income.
The Housing Choice Voucher Program, also called Section 8, can help pay part of your rent in an approved rental.
Other Ways of Dealing With Student Loans
In certain situations, you can have your federal student loans forgiven, canceled, or discharged.
If you served in the Army, Navy, Air Force, or other branch of the U.S. military, you might be able to get help in paying down your student loans. Some military student loan forgiveness programs offer partial assistance toward your student loans, while others will cancel your debt in full.
Most federal student loans are eligible for at least one income-driven repayment (IDR) plan. If your income is low enough, your payment could be as low as $0 per month.
Employer Student Loan Repayment
With student loan balances soaring in recent years, many U.S. companies are adjusting their benefits programs to help ease the burden their employees face and make it easier to attract young professionals.
There are two ways employers help with student loans. The first method is a direct payment to the employee’s lender, every month for an unlimited or fixed period of time. There is typically a cap on the payment amount.
With the second way, the employee pays at least a certain percentage of their income toward their student loans, with the company matching some or all of that amount with a contribution to the individual’s 401(k).
Student Loan Refinancing
To take advantage of flexibility in repayment time frames and other options, you may choose to refinance your federal student loans with a private loan servicer. The private company pays off the federal loan and begins a new loan with the customer.
There are pros and cons to refinancing. By doing so, private loan holders lose out on benefits available to those with federal student loans. Once the loan is refinanced, it is no longer eligible for federal programs.
Recommended: How Does Student Loan Refinancing Work?
The Takeaway
Student loan forgiveness due to disability requires a strict review process. If you can establish and verify total and permanent disability, you can have your federal student loan discharged, which means you no longer have to make payments.
If you don’t qualify for Total and Permanent Disability discharge, you can explore student loan refinancing with Lantern to possibly lower your monthly payments. Remember, if you refinance a federal loan, that amount no longer qualifies for government loan forgiveness.
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