Student loans may be discharged if a student becomes totally and permanently disabled. It is best to talk to a Social Security lawyer about such a possibility. The following are several questions students may have about loan discharges and total and permanent disability:

Q. I can’t pay my student loans because I’m disabled and not working. Is there anything I can do?

A. It is possible to have your student loan debt discharged, or cancelled, if you become totally and permanently disabled. This means you cannot work and earn money because of an injury or illness that is expected to continue indefinitely or to result in death.

Q. How do I know if I qualify for a loan discharge if I am totally and permanently disabled?

A. In order to apply for a loan discharge, you must be 100 percent disabled and have a physician certify this in writing.

Q. How do I apply for a loan discharge?

A. If you qualify for a loan discharge, you must apply for one of the following:

• Federal Perkins Loan borrowers must apply to the school that made the loan or to the loan servicer the school has designated. • Direct Stafford and PLUS Loan borrowers must contact the Direct Loan Servicing Center at 1-800-848-0979. • FFEL Stafford and PLUS Loan borrowers should contact the lender or the agency holding the loan.

If you are not sure what type of loan you have or who holds it, you can find out at The National Student Loan Data System for Students.

Q. What should I do while I am waiting to hear if my discharge has been accepted?

A. Until you hear back about whether your discharge has been accepted or not, you should continue making payments on your loan to prevent it from going into default or accumulating additional interest. However, If you have a FFEL or Direct Stafford Loan, you may be granted forbearance, which means no one is allowed to collect on your loan until it is either approved or denied. If you have a Federal Perkins Loan, schools must automatically defer your loans if you are performing a service that will qualify you for loan cancellation, such as teaching in a low-income school.

Q. What will happen if I qualify and if my discharge is accepted?

A. If you are determined to be totally and permanently disabled, you will have your loan placed in a conditional discharge period for three years from the date you became totally and permanently disabled. During this three-year period, you do not have to pay your loan. If you are still totally and permanently disabled by the end of this three-year period, your loan will be cancelled. If you are not still totally and permanently disabled, you must resume payment.

Q. What will happen if my loan discharge application is denied?

A. For most discharges, the holder of your loan makes the final decision on whether to accept it or not. If your discharge is denied, you are still responsible for repaying the loan.

Source: “Discharge/Cancellation,” Student Aid on the Web, June 28, 2007