The United States Department of Education regulations allow students to discharge their federally regulated student loans based on permanent total disability. The definition for permanent total disability is the borrower must be unable to work and earn money or go to school because of injury or illness that is expected to continue indefinitely or result in death. The total disability cannot be based on a condition that existed before the borrower applied for the loan, unless the condition has since substantially deteriorated” (Temporary or Total Disability Certification Form).
You must complete this form which provides space for the necessary:
- certification from a physician that you are able to engage in substantial gainful activity (defined as attending school, successfully completing the program and securing employment to repay the new loan), and;
- signed and notarized statement acknowledging that the loan you receive cannot be cancelled in the future on the basis of any impairment present when the new loan is made, unless that impairment substantially deteriorates
Use this form if...
- The National Student Loan Data System indicates that you have had federal student loans discharged (canceled/forgiven) due to total and permanent disability
- You acknowledge and agree that any future federal student loans you obtain under the Higher Education Act of 1965, as amended, cannot be canceled or forgiven on the basis of any impairment present when the new loan is made, unless that impairment substantially deteriorates
- Your disability permanently prevents you from working
Don't use this form if...
- You cannot obtain certification from a physician that you are able to engage in substantial gainful activity
- You cannot sign a statement acknowledging that the loan received cannot be cancelled in the future on the basis of any impairment present when the new loan is made, unless that impairment substantially deteriorates
- Your disability does not permanently prevent you from working