- 100% or TDIU qualifies - you do NOT need to be Permanent and Total to qualify
- All federal loans forgiven - including Parent PLUS loans and loans taken after becoming eligible
- One-time benefit - forgiveness under VA disability is a once and done deal
- Not taxed federally - forgiven amount is not counted as income at federal level
(Total and Permanent Disability Discharge)
Those who have TDIU or have a Combined disability rating of 100% are eligible for forgiveness of FEDERAL student loans!
IMPORTANT NOTES:
You do NOT need to be rated Permanent and Total (P&T)!
Parent PLUS loans WILL be forgiven as well.
Loans taken out AFTER becoming TDIU/Perm and Total ARE forgiven as well.
Forgiveness under this program (VA Disability) is a ONCE n DONE deal! Meaning if you plan on taking additional Federal loans, you may want to delay the forgiveness!
If Veteran had a TEACH Grant, obligations from that grant are also forgiven.
Loans forgiven WILL NOT be counted as income and taxed, at the Federal level! Some states may still consider the forgiveness to be income... subject to taxation.
Requesting Forgiveness/Discharge
If the forgiveness was not processed automatically (VA telling them you are qualified):
Contact your loan servicer to let them know you are planning on applying for the forgiveness discharge. This will give you 120 day pause - to think things through.
If you are sure you are going to file for forgiveness then you CAN skip this step as your payments will be automatically paused while your application is being processed (starting once your application has been received).
Complete the Discharge application.
On the disability info page, select the option that best describes your situation (VA Disability).
Get a copy of your VA benefit summary letter from VA.gov and upload it to your application.
Log in > Top right of screen, click your name > Letters > View Letters > Benefit Summary and Service Verification Letter > Click the blue PDF button.
Digitally sign and certify your TPD Discharge Application.
Deferring Forgiveness/Discharge
STOP THE MUSIC! I WANT TO KEEP TAKING LOANS!
If you are eligible but you want to delay the forgiveness you MUST contact Federal Student Aid.
Click HERE for options to contact them, which includes calling, online chat, email, and faxing.