Any borrower receiving a student loan is required to pay back the full sum plus interest if a disability was present and documented at the time of the initial loan application. If this disability was total and permanent at the time of the loan, there can be no discharge. The Department of Education does allow for discharge in the case of a documented disability that becomes a total and permanent disability (TPD) after processing of the initial loan application.
A student loan may be eligible for full discharge if a borrower is certified as having a total and permanent disability. A TPD for student loan discharge is often more rigorous to prove medically than the disability claims used for federal agency benefits or the disability standards of the Social Security Administration. Any borrower receiving federal disability benefits is not automatically eligible for student loan relief. To be considered for student loan forgiveness, a discharge application form must be completed by the borrower and a medical professional. If the Department of Education denies this application, the full sum and any interest must continue to be paid.
Veterans receive special consideration from the Department of Education on repayment issues involving disability claims. Any veteran who is discharged from service because of a total and permanent disability needs only to submit documentation from the United States Department of Veterans Affairs to receive debt forgiveness from an educational loan obligation. Unlike civilians, veterans do not need to submit further medical documentation.