Students who received a Total & Permanent Disability Discharge of their loans can return to school. However, there are specific steps that must be taken to restore your eligibility.
What is Total and Permanent Disability?
If you demonstrate that you are totally and permanently disabled, you can apply to have your federal student loans discharged. Eligible loans include:
- loans made under the William D. Ford Federal Direct Loan (Direct Loan) Program,
- Loans made under the Federal Family Education Loan (FFEL) Program,
- Loans made under the Federal Perkins Loan (Perkins Loan) Program,
- A TEACH Grant, which requires you to complete a service obligation
You must apply for discharge and provide documentation that you are totally and permanently disabled. Nelnet assists the US Department of Education in reviewing and managing this process.
Full details regarding the TPD Discharge process is available on the Federal Student Aid's website.
What happens if I want to return to school and receive new loans after receiving a TPD discharge?
If you are granted a TPD discharge of your federal student loans or TEACH Grant Service Obligation, you will not be eligible to receive a new Direct Loan or TEACH Grant in the future unless:
- You obtain a certification from a licensed medical professional (doctor of medicine or doctor of osteopathy/osteopathic medicine) stating that you are once again able to engage in substantial gainful activity, and
- You sign a statement acknowledging that the new loan or TEACH Grant service obligation cannot be discharged in the future on the basis of any injury or illness present at the time the new loan or TEACH Grant is made, unless your condition substantially deteriorates so that you are again totally and permanently disabled.
Additionally, if you are approved for TPD discharge based on SSA documentation or a licensed medical professional’s certification, and you request a new Direct Loan, Perkins Loan, or TEACH Grant during your 3-year post-discharge monitoring period, you must resume repayment on the previously discharged loans or acknowledge that you are once again subject to the terms of your TEACH Grant service obligation before you can receive the new loan or TEACH Grant.
When you submit the Free Application for Federal Student Aid (FAFSA) after receiving a TPD Discharge, the US Department of Education will notify the Office of Student Financial Services of the discharge. You will be prompted to log into the SFS Dashboard and provide your statement and documentation for further review. You may have to repeat this process on an annual basis if your FAFSA indicates you have an active discharge.
If your discharge is in process (not yet approved), and you wish to reestablish your Direct Loan or TEACH Grant eligibility, you must either cancel your discharge request or provide a statement from your doctor attesting to your ability to engage in substantial gainful activity.