Total and Permanent Disability (TPD) Discharge
Welcome to the online information resource center for TPD discharge of William D. Ford Federal Direct Loan (Direct Loan) Program loans, Federal Family Education Loan (FFEL) Program loans, Federal Perkins Loan (Perkins Loan) Program loans, and Teacher Education Assistance for College and Higher Education (TEACH) Grant Program service obligations.
If you are totally and permanently disabled, you may qualify for a total and permanent disability (TPD) discharge of your federal student loans or TEACH Grant service obligation. If you receive a TPD discharge, you will no longer be required to repay your loans or complete your TEACH Grant service obligation. This section explains more about TPD discharge.
There are three ways to show that you are totally and permanently disabled. This section explains the three ways and outlines the supporting documentation you’ll need to provide to us.
Ready to Apply?
Are you ready to download and begin your application for a TPD discharge?
As a result of a change in tax law, loan balances that are discharged due to TPD are not considered income for federal tax purposes if you receive the discharge during the period from January 1, 2018 through December 31, 2025. If you qualify for a TPD discharge based on documentation from the U.S Department of Veterans Affairs (VA), the date you are considered to have received the discharge for tax purposes is the date that we approve the discharge. If you qualify for a TPD discharge based on documentation from the Social Security Administration or a licensed medical professional's certification, the date you are considered to have received the discharge for tax purposes is the completion date of your three-year post-discharge monitoring period.
If you receive a Form 1099-C, you should keep the form for your records, but you do not need to include it when filing your federal tax return. For additional information, visit irs.gov.
The discharged loan amount may be considered income for state tax purposes. You may want to consult with your state tax office or a tax professional before you file your state tax return.