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. Note that the amount discharged may be taxed as income in some states..
- You can also submit a certification from your doctor or, effective July 1, 2023, a nurse practitioner, physician’s assistant or psychologist, 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. Note that the amount discharged may be taxed as income.
- Effective July 1, 2023 (but in practice started during the COVID period), there is no longer a three year monitoring period after the initial discharge.