Updates to the Total and Permanent Disability Federal Student Loan Discharge Program

Individuals eligible for the TPD Federal Student Loan Discharge program will now be notified via letter.

Elizabeth Hoyt

April 22, 2016

Updates to the Total and Permanent Disability Federal Student Loan Discharge Program

Former and current college students with disabilities may not be aware of a program that allows student debt relief, and the Department of Education announced a new process to identify individuals eligible for the federal loan forgiveness program, called the Total and Permanent Disability (TPD) Federal Student Loan Discharge. The program was created to aid those who are permanently disabled and/or are unable to work.

According to an article by Fox News, the “Obama administration on Monday began sending letters to nearly 400,000 people with permanent disabilities, in an attempt to help them through the process of discharging their student loans.”

For nearly 400,000 eligible people, the Obama administration estimates that these individuals qualify for a combined $7.8 billion, give or take.

Luckily for these student borrowers, they’ll being to be notified of the program and their eligibility for it via direct letter. Within the letter, people will receive and application that must be signed and returned in order to qualify.

According to Secretary of Education, Ted Mitchell, as reported by Fox News, “too few borrowers have used the program as they may not know about it, or found it too complicated to apply.”

The U.S. Department of Education is sending the letters in an attempt to work to help eligible individuals take advantage of the program by letting them know they’re eligible and simplifying the process.

However, the program also includes a three-year monitoring period that stipulates if an eligible individual earns above a certain amount, they may no longer qualify for the program and must begin making payments again.

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