Share on ThriftyFunThis guide contains the following solutions. Have something to add? Please share your solution!
If you have student loans and are receiving Social Security Disability the loans and all part of the loans no matter how large can and will be wiped clean. All that has to happen is your doctor filling out a couplke of forms. I believe the forms come from The Social Security Administration. If not there then get them from the institution in which you owe.
From what I have heard the doctor has to fill out numerous forms and they don't want medical abbreviations, they want the full terminology and the forms that they send to the doctor don't have enough room to write out the full terminology, therefore what it amounts to is the doctor and nurse end up doing a lot of typing, then when the school loan department receives those forms, they send more forms out and this goes on for some time.
For several years, I was hounded by student loan collectors. I would laugh at their letters saying "Please make sure your 72,897.16 is in the form of a check". When I called them to remind them I made less than 800.00 a month, they said "Oh, we will set you up with a payment plan. For just 720.00 a month, you can settle your debt". Not only would this have left me 80.00 to live on but at the time I was 45 and I would have been paying till I was 85. So...
I just had mine done but redhatterb has a point. The student loan people began offering me this service at the point where I "could not even answer a phone"...in other words could not be employed by anyone. The funny thing was I could pick up a phone, and did twice a day for over 6 months, telling them the same thing:"I am on disability which means I don't work, can't work, etc. I had to change my number and then my daughter had to change her land line due to their harassment.
However, you are going to be watched like a hawk for 3 years. If you work any time during that time, they will not only revoke the loan forgiveness but tack on the interest/fees as well. Doing it is like of like childbirth. It is an arduous process but one well worth it.
My daughter is on disability and had several thousand dollars in student loans from earning her degrees. Did you know that the loans will be forgiven when your doctor fills out the proper paper work? I found this out by researching how she was going to pay all the money back. After she got the form and her doctor filled it out, she did not have to pay back any of the loans.
By Janette from Parkersburg, WV
Just an FYI... it isn't guaranteed that the loans will be dismissed and there is a time period before the dismissal occurs. I became disabled in 2008 and applied for such a thing early in 2009. My loans were deffered while my application for dismissal was considered and I haven't had them dismissed yet.
And if you look up this information on the internet you will find where it says many applications for dismissal are not granted.
I'm disabled too. What I was told when I returned to school was: If you have student loans, then get disabled, they may be dismissed or they may not be. However, if you are disabled when you request the loans, you will be responsible for them - period - there will be no forgiveness.
FYI, if you have student loans, are disabled and drawing Social Security Disability benefits, you can be forgiven of all loans if your doctor fills out a specific form for you. I know this because my daughter did it. She had six years of student loans and didn't have to repay a penny. I am not sure where the form came from. Either the SS office or where the student loans originated. Hope this helps.
I did this and the forms were sent to my doctor directly from the school loan company. It took several months because every time the forms were returned to the company, they would want my doctor to provide even more information. Also every couple years I get a letter from them wanting to know how much earned income I have had in the previous couple years. I keep telling them that I retired in December, 2005 because of health/disability problems and the only income I have is $700.00 a month in retirement Social Security. I have to laugh because the letter also tells me I can earn up to $14,000 plus a little more, in one year and still be eligible for the discharge. I have never earned that much in one year in all of my 73 years. I sometimes wonder if the people in that department have any brains.
You are right Redhatterb: I make 692.00 a month and they expect me to send them 720.00 a month...till I am 89 years old!! Yet, I can make 962.00 a month in income while I am being paid to not be able to work...yet they want a doctor to say you can't work which is why you are getting the money in the first place.
I am jumping through what I assume will be a long series of hoops but yes, you can find what you need here. I hope this helps.
Ask a QuestionHere are the questions asked by community members. Read on to see the answers provided by the ThriftyFun community or ask a new question.
Has anyone been through a Disability Discharge for a school loan? If so, how much time does the education department take until a conditional or final loan discharge is decided? How many in depth medical records are requested and how much privacy is there on what is requested? The law changes on July 1, 2008 with the education department. I am on a deadline. Any help is appreciated.
Sandy from Orange Cty, CA
Anytime your doctor or you send anything
GET COPIES!!! I sent in all paperwork for
disability and they requested info from my
numerous doctors and years later it was approved.
They kept putting me on something like
medical hold so it would not pop up on my credit.
And the thing is it is never a guarantee you just
have to keep calling till you get someone who
is compassionate and respectful.
I live in Pa. and when my husband turned terminal I started to call and find out information when I can cancel his student loan. I paperwork from the Cancer Doctor and he enclosed tests and x-rays. That department hounded me every day for payments and I kept saying that he is terminal and that should take care of the loan.
To make a LONG story short, 1 year AFTER his death and 3 original copies of his death certificate, I received a letter from the department saying he MAY BE discharged from paying his student loan. Days later I received a letter from the board of directors saying that they were sorry to hear of his death.
Of course, his loan is discharged. Any time I need help again do not hesitate to contact us. I don't want to feel hopeless about your case but I had even a lawyer and he couldn't get through to them.
Good Luck, daisywoods
PS Keep your paper that says the loan was excused. I still think they will come back to try to collect.