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Student Loans

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I keep reading about people getting TDUI.

This is something we didn't know until I ran across it - but if you have Federal Student Loans - they can be discharged if you are totally disabled and unable to work.

First you have to send in a form that your doctor signs stating you are unable to do ANY kind of work.

When they get that - they suspend your payments, freeze the interest - and give you a conditional discharge.

I think the conditional discharge is for 3 years. During this time you ARE allowed to work (AFTER you have been granted the initial conditional discharge) - but you cannot earn over the Federal Poverty wage for a family of 2 (They send you a letter every year telling you what amount that is).

You have to send them your social security statement every year for them to check your earnings.

After the 3 years of conditional discharge -- they totally discharge the loan.

At that time any payments you made after your disbaility began will be refunded.


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I was on 60% (TDIU) in 1987 when my son and I got a PLUS Loan (parent...whatever). When my conditions worsened in 1998 I applied for a disability discharge and was granted because my condition had worsened. Be sure to check any life insurance and personal loans that you may have for disability waivers also.

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Oh and i forgot but, whats interesting if you look at the paperwork, they have a special section for veterans and Permanent and total and what it means for them. It says that It can no way be turned in to the Veterans Administration office and considered as P & T. So much for my idea of using it, when the doctor says Im total and permanent then turn it into the RO for benefit purposes. Why would they put that little clause on there. Are they afraid that they will have to own up to what the Military has done to alot of veterans??

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A note on the loan discharge. Make sure the date you became unable to work was after the dispersement of your loan. It happened in my case, when the doctor put down the date of surgery (a year prior) and not the date of the letter stating I was unable to work (which is when I became worse) and I was denied for a loan discharge. I had the date adjusted with an explaination and resent the application.

here is the loan discharge application for anyone who needs a copy.


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While some P&T vets report not having trouble or any delays getting their school loans dismissed -- aside from delays built-in to the process -- some of us are.

When I first tried to get this process started and brought the forms to my local VA Clinic (where my doctors were), no one (any of said doctors) at the local VA Clinic would sign the document stating that I was P&T, etc., because he/she wasn't "authorized" to do so ("not their department"). Seemed to me though, that no doctor wanted to put his/her name down (and MD/DO license #) certifying my situation and taking 100% responsibility for that, so he/she kept passing the buck to someone else in the VA maze.

In one way, I partly see why as the Loan Discharge Application forms seem to be set up for SS people ("civilians" if you will rather than veterans) in that they probably have one doctor who takes care of everything and WOULD sign the docs, but in the VA, one's disability rating it shared by the docs (primary care, psych docs, C&P docs, therapy docs, shrinks) who provide medical evidence and the raters (NON-medical people) who make the decision...so no one at the VA takes full responsibility...the forms require a DOCTOR to sign, not a rater. And as mentioned, the docs said "That's not my department" or something like that.

I think the Dept. of Education should make up school-loan dismissal forms more appropriate for VETERANS and the VA.

So I gave up since no one at the VA would sign the dismissal form.

About a year later though, long after I thought they'd be collecting dust at the local VA Clinic, I got the forms signed by some doc in the psych department and sent said documents to FAMS (Atlanta, GA...maybe a collection agency but they are the ones who sent me the Department of Education discharge forms) some time ago but have heard nothing.

I'm talking about the form titled "Loan Discharge Application: Total and Permanent Disability." Is this the correct form?

So does anyone here know exactly WHERE to send these docs (mailing address) so I can try that?

Should I send this directly to the Department of Education instead?

The return address on the forms was FAMS in Atlanta so that's what I did, but as I said, I've heard nothing back.

So where are other P&T vets sending their Student Loan Discharge application forms?

-- John D.



Okay, just saw your post. Thanks. Yes, this is the same form I used. So where is it supposed to be sent (snail-mail address) when completed?

-- JD

Edited by cloudcroft (see edit history)
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You have to find out which company has your student loan.e.g citibank,bank of america etc. once you do that, then you call the customer service number and find out what their policy is. I know that Citibank will accept it faxed to them, but the federal student loan I have William D Ford Direct Loan program wanted an original copy with both mine and the doctors original signatures on it mailed directly to them. So when I called them and got the address, I made sure I sent it return receipt confirming they received it. Each bank/company is different so it is up tp you to find out the particulars from each one. Like I said, just call the customer service number and they should help you.

Hopefully you won't need to have another form signed. I suggest also that you keep copies of everything for your own records.

Good Luck


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