Disabled veterans can now get an automatic discharge of their federal student loans. In the past, the student loan discharge process for disabled veterans generally involved filling out paperwork and submitting supporting documentation to the U.S. Department of Education.
Also question is, can a 100 percent disabled veteran get student loan forgiveness?
By Mike Saunders. Until recently, if you were 100 percent disabled or had a finding by the Department of Veterans Affairs (VA) of Individual Unemployability (IU) you could get your student loans forgiven, but with one expensive caveat: it was considered taxable income by the IRS.
Hereof, what happens to my student loans if I become disabled?
You may qualify to have your student loans discharged, relieving you from having to repay the remainder of your loan, if you meet the Department of Education’s requirements for being totally or permanently disabled. Relatives can notify the loan servicer, and the loan will be canceled. …
What is considered disability for student loan forgiveness?
To qualify for a TPD discharge on a federal student loan, you must meet one of the following criteria: Certification by the U.S. Department of Veterans Affairs, or VA, determining that you are totally unemployable either due to a service-connected disability or based on an individual unemployability rating.