Good news for student loan borrowers: This forgiveness program is back | See if you qualify and how to apply

After previously shutting it down, the U.S. Department of Education has reopened the student loan forgiveness program, aimed at helping borrowers with medical conditions.

The Total and Permanent Disability discharge program clears federal student loan debt for borrowers who are unable to work due to medical conditions. Forbes reports that previously it was Nelnet who took charge of the program, but it was switched off while the Department of Education’s centralised website, StudentAid.gov, took charge. It is now back online.

Do I qualify for the Student Loan forgiveness program?

Direct federal student loans, FFEL-program loans, and federal Perkins loans are all included in the plans, which are available to those who show that they are unable to engage in “substantial, gainful activity” due to a physical or psychological impairment that has lasted for the last five years, is expected to continue for the next five years, or is terminal.

Automatic qualification for the program is given to those certified by the Veterans Administration as being 100% disabled due to a military service-connected impairment. A doctor, physician’s assistant, nurse practitioner, or licensed independent psychologist can complete the form that certifies that the borrower meets the TPD discharge standard. Approval from the Department of Education comes right before the debt is cleared.

A three-year period follows, where the borrower is monitored as regards their medical condition and employment and financial circumstances.

To apply, simply go to the TPD Application page or submit a paper form, although this option will take longer.

The Department of Education explains that “we work with VA and the SSA to identify those who qualify for a discharge based on their status with VA or the SSA. If we receive information from the appropriate agency indicating that you qualify for a TPD discharge, we’ll send you a letter notifying you of your eligibility for discharge.”

However, don’t think that Trump’s cuts haven’t affected processing times. “Even after the processing pause is over, borrowers should expect delays in getting updates about their TPD application status. The Department of Education and its contractors will likely have a backlog of applications that will take time to process”, said the National Consumer Law Center in a blog post earlier this year.

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