tdiu New Student Loan Discharge Process

[SheilaLundlee]

Hi all!

I have been trying to get my student loans discharged since 2005 when I was granted TDIU - they always have a problem with the doctor statements.... Recently, I discovered that there has been a change in the law. If a vet is granted TDIU, he/she no longer has to have a doctor statement to file for a Total Permanent Disability discharge of student loans. Also, there is no 3-year conditional discharge waiting period for these vets. The updated form was just issued in August 2010. Here are some relevant links:

http://www.ifap.ed.gov/dpcletters/GEN0907.html (notice the date of the letter; but the new form JUST came out)

http://www.studentloanborrowerassistance.org/loan-cancellation/disability-and-death/

I've already sent mine off and I will keep this forum posted on the progress. I was given to understand that the process could be reasonably quick - 3 to 5 months.

sheila:rolleyes:

[SheilaLundlee]

Hi all!

I have been trying to get my student loans discharged since 2005 when I was granted TDIU - they always have a problem with the doctor statements.... Recently, I discovered that there has been a change in the law. If a vet is granted TDIU, he/she no longer has to have a doctor statement to file for a Total Permanent Disability discharge of student loans. Also, there is no 3-year conditional discharge waiting period for these vets. The updated form was just issued in August 2010. Here are some relevant links:

http://www.ifap.ed.g...rs/GEN0907.html (notice the date of the letter; but the new form JUST came out)

http://www.studentlo...lity-and-death/

I've already sent mine off and I will keep this forum posted on the progress. I was given to understand that the process could be reasonably quick - 3 to 5 months.

sheila:rolleyes:

Oops! 100% vets are also eligible for this new process, but only if the disability (ies) is service-connected. Only service-connected disabilities can be used to grant TDIU, but 100% ratings can include both service- and non-service-connected disabilities.

[pacmanx1]

I think this page will help explain: http://ifap.ed.gov/d...scharge/va.html

[SheilaLundlee]

UPDATE:

I sent my discharge application to the Department of Education (one of my loan holders) about 2 weeks ago. I received a response yesterday:

Dear Ms. Lundlee,

We have received and are in the process of reviewing your application for discharge due to total and

permanent disability. Since you did not have a physician complete Section 4 of the discharge application

and you attached a Rating Decision or letter from the U.S. Department of Veterans Affairs (VA) verifying

your disability rating, we are evaluating whether the documentation you provided shows that the VA has

determined that you are 100% disabled due to one or more service-connected disability conditions or that

you are individually unemployable.

If you qualify for this discharge, you will receive immediate' discharge and will not be subject to the

three-year conditional discharge period required by the standard discharge process.

You will be notified of our decision by mail.

The U.S. Department of Education's customer care centers are listed below. For questions about the

status of your application, contact each customer care center that handles your loan(s).

William D. Ford Direct Loan Program (Direct Loans) 1-800-848-0979 or (TDD) 1-800-848-0983

Federal Family Education Loan Program (FFEL Loans) 1-800-508-1378 or (FAX) 866-938-4751

Federal Perkins Loan Program (Perkins Loans) 1-866-324-1214 or (FAX) 315-324-1214

All defaulted loans 1-800-621-3115

TEACH Grant* service obligations 1-800-848-0979 or (TDD) 1-800-848-0983

Conditional Disability Discharge 1-888-636-6401 or (TDD) 1-888-636-6401

[RuskiLinguist]

This is a wonderful piece of information to share with this forum. I have downloaded my form and will be filling it out soonest. Thank you for taking the time to share with all of us!

[Papa]

This certainly great news, but you do not have to be a Veteran to get your loan canceled. After the government hired me under the handicap program (considered total and permanent), I saw an article about where they would cancel student loans for the handicapped. Submitted my paper work, and within a few weeks, it was gone. So, if you have non-veteran T&P family and friends, please let them know.

Papa