(DailyDig.com) – The Education Department reported that the Biden administration has authorized $10.5 billion for loan forgiveness for student debtors under a revised scheme to grant debt relief to people with medical limitations.
The Total and Permanent Disability (TPD) discharge program forgives federal student loan debt for those who are permanently unable to work due to a physical or mental disability. This includes recipients of the TEACH Grant, Federal Family Education Loans (FFELs), Direct Loans, and Perkins Loans.
The Biden administration made a number of emergency changes to the TPD program and the federal student loan discharge for additional borrowers during the epidemic. All of the temporary allowances made because of the pandemic have run out. New rules for the TPD release program were implemented by the Department of Education on July 1. Expanding eligibility for federal student debt forgiveness for the handicapped, these new guidelines build on the interim assistance provided by the Biden administration during the pandemic period.
The monitoring period of three years for loan discharge remains in place under the new rules, but income tracking is no longer required.
The new rules make it possible for more people to get student debt cancellations through the new TPD program, such as those receiving Social Security payments. Previously, only those with a medical review term between five and seven years for their Social Security disability benefits were qualified. Borrowers may now be eligible provided they fulfill certain new requirements, such as having an upcoming disability review or qualifying due to a compassionate exemption.
If you don’t meet the requirements based on your Social Security income, but you do meet the requirements based on a certification from a doctor, nurse practitioner, certified independent psychologist, or physician assistant, you may still apply.
The VA’s TPD discharge program allows borrowers who are totally handicapped due to military service to have their college loans written off.
Due to potential changes in federal and state tax requirements depending on the date their TPD discharge occurred, borrowers pursuing the TPD discharge program should speak with a tax expert before moving forward.
Copyright 2023, DailyDig.com
