tdiu Student Loan Discharge

[free_spirit_etc]

That's great! At first they are just provisionally discharged for a certain number of years. But during that time they don't require payments, or charge interest. I don't remember the exact time-frame now. But I know that you are not allowed to EARN more than the federal poverty level during that time. When they re-evaluate your case after that point, they permanently discharge your loans, as long as you are still disabled.

[free_spirit_etc]

That's great! At first they are just provisionally discharged for a certain number of years. But during that time they don't require payments, or charge interest. I don't remember the exact time-frame now. But I know that you are not allowed to EARN more than the federal poverty level during that time. When they re-evaluate your case after that point, they permanently discharge your loans, as long as you are still disabled.

Oh wow! I just read the letters. It looks like they have a different process if you are disabled due to a service connected disability and they grant the permanent discharge much sooner. That's great stuff!

[free_spirit_etc]

It looks like they changed the process a bit. You used to receive a provisional discharge - and wouldn't get the final discharge for several years.

Now it looks like you get the discharge - and then put you on "post-discharge monitoring" for 3 years where they reinstate your loan if you do not meet the requirements (of earning less than the poverty level). I am not sure if the post-discharge monitoring applies to VA discharges or not.

I would say it is a MUCH better system than it used to be though. Back when they did the provisional discharge and the final discharge, you were not eligible to receive a refund for the payments you had made after you were disabled until your debt was finally discharged. So it took 3 years. It looks like under the new system that you can receive your refund MUCH quicker - because they have it set up where your debt has been discharged (but could be reinstated during the post-discharge monitoring).

That was a battle I finally gave up on. My husband received his provisional discharge during his lifetime, but had paid several months of payments while he was waiting to hear back from them about his application. He was due a refund for those payments, but would not receive them for three years (when his debt was finally discharged).

Well - he died before that. But they sent a letter and said he his debt had been finally discharged - and it said they would refund any payments made retroactive to the date he became disabled.

But then they never would refund the money. They said he didn't meet the terms of the provisional discharge because the provisional discharge stated you had to remain disabled for three years. They didn't count dying as a disability. They said he had to LIVE three years to remain disabled. It seemed ridiculous that they would require a disabled person to live three years before they could get their refund. It would seem like if they died within that three year period, they were obviously not able to work within the three year period. PLUS they sent a letter SAYING that any payments made after he became disabled would be refunded.

AND they would only TELL me that they would not refund the money. They would not answer any of my letters, and they refused to send me anything in writing saying they would not refund the money. Then the ombudsman said I was sent the letter regarding the refund in error. But he checked it out and said that they said that is the standard letter they send out when someone who is on the disability discharge dies.

How crazy is that they they send a deceased person's family a letter telling them they will refund money, and then refuse to refund money, and refuse to even state in writing that the money won't be refunded.

It was crazy for sure.

[Gzaonas]

I just sent my VA paperwork in to all my student loan banks/servicers. Federal loans, Private Loans (Wells Fargo, ACS & Sallie Mae) anyone have any luck with private loans getting discharged through this process ? Im confused to whether your discharge was for federal student loans. Im embarrassed to even call out the number that is owed, especially after interest . My credit report looks like I owe on a house.

Thanks and congrats again !