Things You'll Need:
- medical doctor
- disability
- federal student loans
- consolidated student loans
-
Step 1
Gather your paperwork. If you have a disability and student loans it's time to get organized, especially if you have fallen behind in payments. You may qualify for a disability discharge or forgiveness of your federal student loans if you are unable to work or otherwise earn an income in the future.
-
Step 2
Call the holders of your student loans. Request a disability discharge form. Document this telephone call. Make sure to write down the time of your call and as well as the person's name. Do not be intimidated by the person on the other end of the telephone, especially if you have a student loans in default or collections because they will sometimes try to mislead you into thinking that you cannot potentially qualify for a loan discharge. If this person feels harassing in their perpetual questioning about why you seek to discharge your loans, restate that you want the disability discharge form sent to you.
-
Step 3
Meet the Department of Education's standards for disability. To qualify you have to be unable to work or earn money. If you are unable to work because of disability then call the student loan lender and ask for the discharge form. Ironic as it may seem government agencies do not define disability the same. A person who is receiving Social Security Disability may not qualify for a student loan discharge, so be careful when thinking you may automatically qualify. On the flip side you do not have to be on disability to get your loan discharged.
-
Step 4
Go to your doctor. The only acceptable signature for this student loan discharge form is a medical doctor. The doctor must sign the form attesting to a couple of statements that verify the nature of your disability and in what way this prevents you from working and earning money.
As soon as you request the disability discharge form from the student loan lender, make an appointment with your doctor. If possible have a discussion prior to the appointment to see if he or she is willing to sign complete the discharge application. Make sure to keep a copy of the signed application form. -
Step 5
Wait. After sending in all the required forms now you have to wait until you hear back from the loan holder or the Disability Division of the Department of Education. If you meet the requirements to have your loan forgiven this does not mean your loan is gone right away. There is a conditional discharge period that lasts three years. But, the status of your loan changes, interest will stop accruing on your account, and collection on your account stops.
It can take several weeks to hear back from the lender. Write down the date you sent your application. If you haven't received any notification from them, but are still getting payment notices or if you're just plain impatient, call them. Sometimes being proactive and calling will get you more information. -
Step 6
Make sure to have your doctor fill out a discharge application for each separate lender. If you have one loan with SallieMae and another with some other bank then you will have to fill out separate applications. Although the information will be the same they are going to different places so make sure you find all of your student loans (see resources section below).
Comments
poetkelly said
on 11/16/2009 Great information. Everyone, just be aware that it can take a LONG time for them to process your request. It took a little over two years from the time I first submitted my paperwork until they finally discharged my loans.
justafactoflife said
on 11/6/2009 JPwriter, you are correct in that there is a new form, but it basically asks the doctors the same question just reworded. I have placed this into my doctor's hands on my last visit this week. He says he will re-read it and let me know. I have another appointment next month. I am not very optomistic that he is going to consider it any different in the meaning. I agree with you that they did change the definition somewhat, but I'm not sure if it will satisfy my doctor's concerns. I did go ahead and resubmit the old form that he did sign "yes" from before, and sent additional letters about diagnosis and explaining my condition how that would effect my ability to be able to work from my other doctors, along with a letter of mine, explaining my doctor's concerns. Hopefully, the review will go in my favor.
jpwriter said
on 10/21/2009 @justafactoflife - If your doc signed the first part saying yes, you're disabled or unable to work then #3 is essentially the same question. Did you know the form has changed? It enables your doctor to explain rather than give a yes or no answer. If you haven't approached the doc recently try the new form. Most doctors think the Dept. of Ed wont discharge the loans which is not what you need to hear when you're disabled and already struggling. I absolutely understand your point and frustration. I wonder how much diagnosis plays into the picture. Don't give up trying. If you happen to be in default they can help you with this form, too. Good luck!
justafactoflife said
on 10/20/2009 My doctors all have refused to answer the 3rd question on the discharge form that asks the question am I "unable to work and earn money in any capacity?" Yes or No. They say they don't know if there is a job out there that I could earn money in any capacity or not. The way that it is worded, if I sat on a corner and sold pencils or begged, I would be earning money in that capacity but not enough to pay my student loan payment. This is an unfair question that puts the doctors on the line with their practice and license potentially being taken away. Good luck finding a doctor who will answer this question "yes".
heatherschulte said
on 8/21/2009 This is very useful information for anyone that has outstanding student loans and is living with a disability. 5*