Total and Permanent Disability Discharge
Total and Permanent Disability Discharge (TPD) can be difficult to obtain so it’s very important to follow all instructions and respond to all requests in a timely way. This is due to significant fraud found in past audits of the program. Only the actual borrower of the loans disability status can be submitted for discharge review. All borrowers applying for this discharge must do so at www.disabilitydischarge.com (this is a federal site despite the .com)
There are three ways to obtain a TPD discharge. They are:
- Submit a letter from the U.S. Department of Veterans Affairs that states you are unemployable due to a service connected disability. If approved, the loan will be fully discharged (although possibly taxed as income to you) with no further follow up requirements.
- If you are receiving Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) and you are required to be reviewed no more often than every five to seven years, you will submit this determination letter. After initial approval, you will be monitored for three years. While not due for payments during this time, you may be asked for further documentation of income or SSDI or SSI status. If you do not respond to these fully or timely, the loan will be put back into repayment and you will have to start the process from the beginning. After the three year monitoring period, the loan is discharged permanently and no more actions will be required from you. Note that the amount discharged may be taxed as income.
- You can also submit a certification from your doctor that states you are unable to work and earn income due to medically determinable physical or mental illness or injury and that this situation is expected to last or has lasted for a minimum of 60 consecutive months, or will result in death. If you are initially approved for discharge, you will be monitored for three years to determine if your situation improves. During this time you will be asked to submit additional documentation including proof of income. Failure to respond to these request timely or completely will result in the loan being once again due for payment and you will have to start the TPD process from the beginning. After the three year monitoring period, the loan is discharged permanently and no more actions will be required from you. Note that the amount discharged may be taxed as income.