Total and Permanent Disability Student Loan Forgiveness

Total and Permanent Disability Student Loan Forgiveness

The latest student debt statistics indicate how serious the student loan crisis has become for borrowers across all demographics and age groups. Among 45 million debtors in the U.S., collective debt has reached a record $1.6 trillion according to a Bloomberg analysis. These numbers aren’t surprising considering that the average tuition for the 2019–2020 academic year for a four-year in-state public college averaged $26,590. Loan debt is now the second-highest consumer debt category—behind only mortgage debt—and higher than both credit cards and auto loans.

Fortunately, if you qualify under certain categories, your loan debt can be excused. If you’re a student loan borrower who can’t work because of a long-term disability, you may be entitled to student loan forgiveness through your original lender for your private loans, or, if not, through student loan settlement with a law firm like McCarthy Law.

Student Loan Forgiveness Programs Available for Those with a Total and Permanent Disability

If you’re a student loan borrower facing long-term disability and struggling under a mountain of debt, there are a few programs you can consider, including the following:

Total and Permanent Disability (TPD) Discharge

For federal student loan borrowers facing long-term disability, you may be eligible for student loan forgiveness through total and permanent disability discharge. This program relieves you from having to repay a William D. Ford Federal Direct Loan, a Federal Family Education Loan, and a Federal Perkins Loan to complete a TEACH Grant service obligation. Note that this program only applies to those with federal loans.

To be eligible, you’ll first have to demonstrate that you’re totally and permanently disabled. You can do so in one of the following ways:

  • If you’re a veteran: Submit documentation from the Department of Veterans Affairs showing that you’re unemployable due to a service-connected disability
  • If you’re receiving federal benefits: Submit a Social Security Administration notice showing that you’re receiving disability insurance or Supplemental Security Income and that your next scheduled disability review will be within five to seven years
  • If you’re otherwise disabled: Submit certification from a physician proving that you’re totally and permanently disabled, meaning that you suffer a physical or mental impairment that’s lasted continuously for at least five years or could result in death

If it’s determined that you’re totally and permanently disabled based on your documentation, you’ll be notified that your loan obligations have been discharged and that you’ll receive a refund for any loan payments received after the date the documentation was obtained.

Private Student Loan Forgiveness Due to Disability Through Your Lender

If you borrowed from a bank, credit union, or another private lender, your access to loan forgiveness, even in cases of disability, is likely more limited. However, some lenders will forgive your remaining balance in the case of a disability or death. If your lender offers this option, be prepared to provide documentation of your disability.

How Do You Know Whether You Have a Federal or Private Loan?

In order to understand your options, you must first consider whether you have federal or private loans. Private student loans are made by private lenders such as banks or credit unions. Federal student loans, on the other hand, are funded by the U.S. Department of Education.

To check whether or not you have a federal or private loan, first determine whether it’s been issued by the federal government. To get a list of your federal student loans, go to the National Student Loan Data Services website maintained by the U.S. Department of Education. If your particular student loan isn’t listed there, it’s most likely a private student loan. A qualified student debt lawyer can also help you understand what kind of loans you have if you’re still unsure.

For those with federal loans, you can have your federal student loans forgiven, canceled, or discharged under certain circumstances. Learn more about the types of forgiveness options and whether you qualify due to your job or other circumstances online. For those with private loans, look no further than the student loan experts at McCarthy Law.

The Student Loan Attorneys at McCarthy Law Can Help

If you have a private student loan, the attorneys at McCarthy Law can help. Under our student loan debt settlement program, an experienced attorney contacts your student loan lenders and begins a negotiation process to significantly reduce the balance on your private loans. At the end of a successful student loan settlement, you’ll end up paying only a fraction of the original balance claimed by the lender. The rest of the debt is forgiven by the lender and the settlement is a full and final settlement of the debt, leaving you without the burden of student loan debt going forward.

Start by giving our offices a call and telling us about your unique situation during a free phone consultation. One of our Engagement Team Members will thoroughly review your case. Once we have a full understanding of your case, we can give you the best possible options.

Contact a Skilled Student Loan Lawyer at McCarthy Law

Student loan forgiveness may seem too good to be true—especially for those with private loans—but there are legitimate ways to reduce your student debt if you have the right student loan lawyer by your side. That’s where the attorneys at McCarthy Law come in. If you’re someone who has a permanent disability or is overwhelmed with student loan payments, consider reaching out to our attorneys who help you explore the best options for getting on top of your finances. A skilled student debt lawyer can provide you with practical legal advice after fully analyzing your situation and determining the most strategic method that will have you feeling financially reassured.

The lawyers at McCarthy Law understand the stress of student debt, especially for individuals with disabilities burdened with private loan debt. We are dedicated to fighting for your financial freedom. To schedule a free consultation with a knowledgeable and experienced debt settlement professional, call (855) 976-5777 or fill out our contact form today.