Student Loans

[free_spirit_etc]

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.

Free

[free_spirit_etc]

I have a copy of the discharge notice my husband got from FSA - Federal Student Aid.

THe toll-free number is 1-888-636-6401

email disability_discharge@acs-inc.com

Address

Us Department of Education Total and Permanent Disability Assignments

PO Box 7200

Utica, NY 13404

According to their regs - once they notify you that you have a conditional discharge - you don't have to make any more payments. But after you have been disabled throughout the conditional discharge period -and they actually discharge your loan -- you will be reimbursed for any payments made AFTER the time you became totally disabled. It doesn't say after you FILED -- it sayd after you became disabled -- I will let you know how this works. My husbnad FILED last May -- I think he was notified in July that he didn't have to make payments. But the doctor had signed that he was unable to work since December 2005. The letter I got this month telling me his loan has been discharged states he will get reimbursed for any payment he made after he became disabled. So I will let you know whether they refund back to Dec. 2005 - or just to the date he filed.

Another note - is it states that they report the discharge to the credit bureaus. I have no idea what effect this can have on a person't credit -- because it is discharged because of disability - not because of non-payment.

But that is something you might want to check out.

Free

[cloudcroft]

Tamara and Free,

Thanks to both of you for the information.

It seems that I need to make some phone calls to find out who has my loan as well as what happened to the documents I DID send in to FAMS.

Regards,

-- John D.

Edited May 29, 2007 by cloudcroft

[free_spirit_etc]

John,

Here is a link to the law regarding student loan discharges:

http://a257.g.akamaitech.net/7/257/2422/04...4cfr682.402.pdf

Free

Tamara and Free,

Thanks to both of you for the information.

It seems that I need to make some phone calls to find out who has my loan as well as what happened to the documents I DID send in to FAMS.

Regards,

-- John D.