What is Disability Discharge?
Total and Permanent Disability discharge is a type of student loan and service obligation forgiveness offered by the U.S. federal government. It is only applicable to federal student loans and TEACH Grant service obligations.
Student Loans That Qualify for Disability Discharge
The following loan types are the only ones that qualify for forgiveness with a TPD discharge:
- William D. Ford Federal Direct Loan (Direct Loan)
- Federal Family Education Loan (FFEL)
- Federal Perkins Loan (Perkins Loan)
Disability Discharge and TEACH Grant Service Obligation
If you have a service obligation from a TEACH Grant, this may also be discharged if you qualify for Total and Permanent Disability with the U.S. Department of Education.
Who Qualifies for Disability Discharge
To have your student loans or TEACH Grant obligation discharged due to total and permanent disability, you must be able to prove your disability to the Department of Education.
For the purposes of TPD discharge, total and permanent disability is generally defined as follows:
A medically determinable physical or mental impairment that prevents you from engaging in substantial gainful activity and that
- Can be expected to result in death;
- Can be expected to last for a continuous period of 60 months or longer; or
- Has lasted for a continuous period of 60 months or longer.