Frequently Asked Questions (FAQs)

About total and permanent disability discharge

Who is Nelnet?

Nelnet assists the U.S. Department of Education (called “the Department” throughout this site) in administering the total and permanent disability (TPD) discharge process. We manage this site and communicate with borrowers on behalf of the Department about TPD discharges.

The terms "borrower," “you,” and “your” are used throughout this site to refer to any TPD applicant, including individuals who are applying for discharge of a Teacher Education Assistance for College and Higher Education (TEACH) Grant Program service obligation. The terms “we,” “us,” and “our” are used to refer to Nelnet.

What is TPD discharge?

A TPD discharge relieves you from having to repay or comply with obligations associated with the following types of federal student aid because you are totally and permanently disabled:

• Loans made under the William D. Ford Federal Direct Loan (Direct Loan) Program,
• Loans made under the Federal Family Education Loan (FFEL) Program,
• Loans made under the Federal Perkins Loan (Perkins Loan) Program
• A TEACH Grant, which requires you to complete a service obligation

Before your federal student loans or TEACH Grant service obligation can be discharged, you must submit an application for discharge and provide information to us to show that you are totally and permanently disabled. We will evaluate the information and determine if you qualify for a TPD discharge.

Depending on your situation, you will attach the supporting documentation to your application, have a licensed medical professional complete Section 4 of your application, or, in some cases, submit your application without documentation.

How do I demonstrate that I am totally and permanently disabled?

You can demonstrate that you are totally and permanently disabled in one of the following three ways:

1. We regularly receive information from the U.S. Department of Veterans Affairs (VA) identifying veterans who may qualify for TPD discharge. If you are a veteran and we have received information from the VA indicating that you have a service-connected disability (or disabilities) that is 100% disabling or that you are totally disabled based on an individual unemployability rating, we will contact you by letter to notify you that you are eligible for a TPD discharge. The letter we send will also explain that unless you tell us by the date specified in the letter that you do not want to receive a TPD discharge, the Department will automatically approve the discharge of your federal student loans and/or TEACH Grant service obligation. If you want to have your loans and/or TEACH Grant service obligation discharged, you are not required to take any further action. We will instruct the holders of your federal student loans and/or TEACH Grant service obligation to discharge your loans and/or service obligation. You will not need to complete a TPD discharge application or provide documentation of your VA disability determination.

   If you are a veteran and you believe you meet the eligibility requirements for TPD discharge based on a disability determination from the VA, but we did not contact you about a TPD discharge, you can submit a TPD discharge application along with documentation from the VA showing that you have a service-connected disability (or disabilities) that is 100% disabling or that you are totally disabled based on an individual unemployability rating. The documentation you provide must include the effective date of the VA’s determination.

2. We regularly receive information from the Social Security Administration (SSA) identifying individuals who may qualify for TPD discharge. If we have received information from the SSA indicating that you are receiving Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) benefits and that your next scheduled disability review will be no less than 3 years from the date of your most recent SSA disability determination, we will contact you by letter to notify you that you are eligible for a TPD discharge. The letter we send will also explain that, unless you tell us by the date specified in the letter that you do not want to receive a TPD discharge, the Department will automatically approve the discharge of your federal student loans and/or TEACH Grant service obligation. If you want to have your loans and/or TEACH Grant service obligation discharged, you are not required to take any further action. We will instruct the holders of your federal student loans and/or TEACH Grant service obligation to discharge your loans and/or service obligation. You will not need to complete a TPD discharge application or provide documentation of your SSA disability determination.

   Additionally, you can apply for TPD discharge if you are eligible for SSDI or SSI benefits. To qualify this way, you need to provide either

   • a copy of your SSA notice of award or

   • a Benefits Planning Query if one of the following is true:

     1. Your next scheduled disability review has been scheduled within five to seven years from the date of your last SSA disability determination.
     2. Your next continuing disability review has been scheduled at three years.
     3. You have a medical onset date for SSDI or SSI of at least five years before you apply for TPD discharge.
     4. You qualify for SSDI or SSI based on a compassionate allowance.
     5. You are currently receiving SSA retirement benefits, and immediately before you qualified for retirement benefits, you met one of the requirements described above.

3. You can submit a certification from a licensed medical professional (who is licensed to practice in the United States) that you are totally and permanently disabled. A licensed medical professional must certify that you are unable to engage in any substantial gainful activity by reason of a medically determinable physical or mental impairment that:

   • Can be expected to result in death;
   • Has lasted for a continuous period of not less than 60 months; or
   • Can be expected to last for a continuous period of not less than 60 months.

Each option for showing that you are totally and permanently disabled has specific requirements regarding the supporting documentation that you must submit with your TPD discharge application. To review the supporting documentation requirements, click here.

What should I do if I want to apply for a TPD discharge?

Contact us regarding your intent to apply. You can do this by phone or email:

Phone: 888.303.7818

Call Center Hours:

Monday - Wednesday 8:00 AM to 8:00 PM (ET), Thursday - Friday 8:00 AM to 6:00 PM (ET)

Email: DisabilityInformation@Nelnet.net

Submit a written request to receive an application to the following address:

U.S. Department of Education

P.O. Box 87130

Lincoln, NE 68501-7130

You may also download your TPD discharge application online at StudentAid.gov. To download your application, click here.

Once you have told us you intend to apply or have returned a TPD application for a TPD discharge, we will take the following actions:

• First, we will provide you with the information you need to apply for a TPD discharge by sending you a TPD application.
• Second, we will identify your federal student loans and/or TEACH Grant service obligation that may qualify for a TPD discharge.
• Finally, we will contact your loan holders and instruct them to suspend collection activity on your loans for a period of up to 120 days. This means that you will not be required to make payments on your loans for 120 days.

NOTE: If any of your loans are in default and payments are being collected by wage garnishment and/or Treasury Offset, the garnishment or offset may continue. If your request for TPD discharge is approved, the wage garnishments and/or Treasury Offset Payments will be discontinued.

The suspension of collection activity will give you time to complete and submit the TPD discharge application. If we do not receive your application within 120 days, you will again be required to make payments.

I want to apply for a TPD discharge, but I am also considering consolidating my loans or I am already in the process of consolidating my loans. What should I do?

If you have not yet submitted an application for a consolidation loan, you should not do so until after you have submitted your TPD discharge application and we have made a determination of your eligibility for TPD discharge. If your application is approved and your loan(s) are discharged, you will no longer need to consolidate. If your application is denied, you can then submit an application for a consolidation loan.

If you have already submitted a consolidation loan application and it is being processed, you should contact the federal servicer that is processing your application for a consolidation loan and tell the servicer to suspend processing until after you have submitted your TPD discharge application and we have determined whether you are eligible for TPD discharge. If we approve your application, you can tell the federal loan servicer to cancel your consolidation request. If we deny your application, you can tell the federal loan servicer to move forward with the consolidation process.

Requesting a TPD Discharge

I haven’t applied for a TPD discharge, but I received a letter saying that I may be eligible. Why?

We have agreements with the Social Security Administration (SSA) and the U.S. Department of Veterans Affairs (VA) that allow us to proactively determine whether you may qualify for a TPD discharge. If we determine that you may qualify, we will contact you to let you know what you need to do to request a discharge.

How do I apply for a TPD Discharge?

To apply for a TPD discharge, you may:

• Download and/or Print Blank TPD Discharge Application from StudentAid.gov - This option allows you to download and/or print a blank PDF of the TPD discharge application. You can choose to open the PDF and print the blank application or to save the PDF to your computer and then print it. In either case, you will need to complete Sections 1 through 3 of the blank application. Next, attach the supporting documentation to your application if applicable or have a licensed medical professional complete Section 4 of your application. Finally, send the discharge application to us along with any supporting documentation.
  

  To download and/or print a blank TPD discharge application, click here.

• Request TPD Discharge Application by Phone or Email – This option allows you to contact us by phone or email and ask that we send you a paper TPD discharge application through the mail. After you receive the blank paper application, complete Sections 1 through 3. Next, either attach the supporting documentation to your application if applicable or have a licensed medical professional complete Section 4 of your application. Finally, send the discharge application to us along with any supporting documentation.

To request a TPD discharge application by phone or email:

Phone: 888.303.7818

Call Center Hours:

Monday - Wednesday 8:00 AM to 8:00 PM (ET), Thursday - Friday 8:00 AM to 6:00 PM (ET)

Email: DisabilityInformation@Nelnet.net

Where do I send my completed TPD discharge application?

When your TPD discharge application is complete, mail your application along with any supporting documentation to us at the following address:

U.S. Department of Education
P.O. Box 87130
Lincoln, NE 68501-7130

• Fax your application and supporting documentation to us at 303.696.5250

• Email your application and supporting documentation to us at DisabilityInformation@Nelnet.net

Can my representative apply on my behalf and assist me throughout the process?

Yes, your representative can complete and submit your TPD discharge application on your behalf, and assist you throughout the discharge process. However, you and your representative must complete an Applicant Representative Designation form. We must receive and process this form before we can work with your representative. You must submit this form even if you have a power of attorney for your representative.

If you are unable to sign the Applicant Representative Designation form, your representative may sign the form in your place. The signed form must be accompanied by a power of attorney document.

To download and/or print the Applicant Representative Designation form, click here.

My federal student loans are with several loan holders. Do I need to complete more than one TPD discharge application?

No. You only need to submit one TPD discharge application to cover all of your federal student loans and/or TEACH Grant service obligation. When we receive your discharge application, we will contact the holders of all of your federal student loans and/or TEACH Grant service obligation and keep them informed throughout the process.

I currently receive Social Security disability benefits. Does that mean I automatically qualify for a TPD discharge of my federal student loans?

Not necessarily. The standard for TPD discharge purposes only accepts some Social Security Administration (SSA) disability determinations. Eligibility for Social Security disability benefits does not mean you are automatically eligible for TPD discharge. We regularly receive information from SSA identifying student loan borrowers and TEACH Grant recipients who may qualify for TPD discharge and if you are identified through this means, we will contact you and explain how you can apply for a TPD discharge. Additionally, you can apply for TPD discharge if you are eligible for SSDI or SSI benefits. To qualify this way, you need to provide either

• a copy of your SSA notice of award or

• a Benefits Planning Query if one of the following is true:

  1. Your next scheduled disability review has been scheduled within five to seven years from the date of your last SSA disability determination.
  2. Your next continuing disability review has been scheduled at three years.
  3. You have a medical onset date for SSDI or SSI of at least five years before you apply for TPD discharge.
  4. You qualify for SSDI or SSI based on a compassionate allowance.
  5. You are currently receiving SSA retirement benefits, and immediately before you qualified for retirement benefits, you met one of the requirements described above.

What types of licensed medical professionals may certify my total and permanent disability on the TPD discharge application?

You can qualify for TPD discharge by having a licensed medical professional certify Section 4 of your TPD application. However, your medical professional must be one of the folowing:

• Doctor of medicine (M.D.)
• Doctor of osteopathy/osteopathic medicine (D.O.)
• Nurse practitioner (N.P.)
• Physician’s assistant (P.A.)
• Certified psychologist at the independent practice level

I live outside the United States. Does my licensed medical professional have to be licensed in the United States?

Yes. You will need to have your TPD discharge application completed by a licensed medical professional who is licensed in the United States. Your local licensed medical professional may work with a licensed medical professional in the United States to help you apply for discharge.

How Disability Is Determined

What happens after I mail my TPD discharge application?

After we receive your TPD discharge application, we will take the following actions:

• First, we will contact your loan holders and instruct them to suspend collection activity on your loans for a period of up to 120 days. This means that you will not be required to make payments on your loans for 120 days.

  NOTE: If any of your loans are in default and payments are being collected by wage garnishment and/or Treasury Offset, the garnishment or offset may continue. Once your request for TPD discharge is approved, the wage garnishments and/or Treasury Offset Payments will be discontinued.

• Second, we will review the TPD discharge application that you submit along with any supporting documentation to ensure that the application is complete, and that it includes information that indicates you may qualify for a discharge.

• Finally, once we have received all required documentation, we will determine whether you qualify for a discharge.

What happens if we approve your TPD discharge request?

This will depend on how you choose to demonstrate that you are totally and permanently disabled.

If we approve your request because you submitted or we received VA documentation, the following will occur:

• We will notify you and the holders of your loans and/or TEACH Grant service obligation of the approval.

• We will instruct the loan holders to return any loan payments received on or after your disability date to the person who made the payments. For this purpose, your “disability date” is the effective date of the VA’s determination that you have a service-connected disability (or disabilities) that is 100% disabling or an individual unemployability rating.

• Your loan holders will discharge your loans.

If we approve your request because you submitted or we received SSA documentation or you submitted a licensed medical professional certification, the following will occur:

• We will notify you and the holders of your loans and/or TEACH Grant service obligation of the approval.

• We will instruct the loan holders to return any loan payments received after your disability date. For this purpose, your disability date is the date we originally received the documentation used to approve your request or the date a licensed medical professional signed your discharge application.

• Your loan holders will transfer your loans and/or TEACH Grant service obligation to us for discharge. You will then be subject to a 3-year post-discharge monitoring period that begins on the date the discharge is approved. There are requirements that you must meet during the post-discharge monitoring period. Click here for detailed information regarding the 3-year post-discharge monitoring period requirements.

• We will reinstate your obligation to repay your discharged loans or complete your discharged TEACH Grant service obligation if at any time during the 3-year monitoring period you do not meet the requirements of the post-discharge monitoring period.

What happens if we deny your TPD discharge request?

• We will notify you of the denial.

• We will instruct your loan holders to resume collection activity on your loans.

• The notification that we send will include the reason for the denial and instructions on what you can do if you have questions about the basis of the decision or believe there is other information that we should consider.

  Note: If you receive a new Direct Loan, Perkins Loan, or TEACH Grant before the Department grants a discharge, the Department will deny your discharge request and instruct your loan holders to resume collection activity on your loans.

You denied my application. Can I appeal the determination?

If you have questions about why we denied your application or believe there is other information that should be considered, please contact us to discuss.

Phone: 888.303.7818

Call Center Hours:

Monday - Wednesday 8:00 AM to 8:00 PM (ET), Thursday - Friday 8:00 AM to 6:00 PM (ET)

Email: DisabilityInformation@Nelnet.net

If you provide us with additional information that supports your eligibility for discharge within one year of the date of your denial letter, we will reevaluate your application for a TPD discharge without requiring you to submit a new application.

If you do not provide us with additional information that supports your eligibility for discharge within one year of the date of your denial letter, but you still want us to reevaluate your eligibility for discharge, you must submit a new TPD discharge application.

I have a partial disability that limits my ability to work. I am able to work, although on a very limited basis. Am I eligible for TPD discharge?

If you can submit documentation that demonstrates that you meet the definition of TPD, then you are eligible. See here for more information about the documentation that can result in your receiving a total and permanent disability discharge.

I have a disability that prevents me from working in the occupation for which I was trained. Can I get a discharge?

That you cannot work in the occupation for which you are trained does not affect whether you are eligible for a discharge. If you can submit documentation that demonstrates that you met the definition of total and permanent disability, then you are eligible. See here for more information about the documentation that can result in your receiving a total and permanent disability discharge.

Discharge Processing

How long does the TPD discharge application process take?

Our review of your TPD discharge application typically takes less than 30 days to complete. However, incomplete discharge applications and, if applicable, the response time of a licensed medical professional can delay our review process.

We will notify you if there is a delay in processing your TPD discharge application and let you know what information is needed for us to resume processing.

How do I know if I will be subject to a 3-year post-discharge monitoring period?

If you are approved for a TPD discharge based on SSA documentation or a licensed medical professional’s certification, you will be subject to a 3-year post-discharge monitoring period that begins on the date the discharge is approved.

If you are approved for a TPD discharge based on VA documentation, you will not be subject to a 3-year post-discharge monitoring period.

If I’m subject to a 3-year post-discharge monitoring period, what will happen during the monitoring period?

We will monitor specific items to ensure that you continue to qualify for a TPD discharge. These items include your receipt of a new federal student loan(s) and, if we approved your discharge because of SSA documentation, changes in your SSA disability determination.

We will reinstate your obligation to repay your discharged loans or complete your discharged TEACH Grant service obligation if at any time during the 3-year monitoring period:

• You receive a new Direct Loan, Perkins Loan, or TEACH Grant; or

• You receive a notice from the SSA stating that you are no longer totally and permanently disabled, or that your disability review will no longer meet the required review period as indicated in your most recent SSA notice of award for Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) benefits.

In addition, during the 3-year post-discharge monitoring period, you must promptly notify or respond to us if:

• There is a change in your address or telephone number; or

• You receive a notice from the SSA stating that you are no longer totally and permanently disabled, or that your disability review will no longer meet the required review period as indicated in your most recent SSA notice of award for Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) benefits.

If we grant a TPD discharge of your federal student loans or TEACH Grant service obligation, you will not be eligible to receive a new Direct Loan, Perkins Loan, or TEACH Grant in the future unless:

• You obtain a certification from a licensed medical professional that you are able to engage in substantial gainful activity; and

• You sign a statement acknowledging that the new loan or TEACH Grant service obligation cannot be discharged in the future on the basis of any injury or illness present at the time the new loan or TEACH Grant is made, unless your condition substantially deteriorates so that you are again totally and permanently disabled.

In addition, if you request a new Direct Loan, Perkins Loan, or TEACH Grant during the 3-year post-discharge monitoring period described earlier, you must resume repayment on the previously discharged loans or acknowledge that you are once again subject to the terms of your TEACH Grant service obligation before you can receive the new loan or TEACH Grant.

If I’m subject to a 3-year post-discharge monitoring period and my obligation to repay my federal student loans or complete my TEACH Grant service obligation must be reinstated, what will happen?

If your obligation to repay your federal student loans or complete your TEACH Grant service obligation is reinstated, you will again be responsible for repaying your loans or completing your TEACH Grant service obligation. However, you will not be required to pay interest that would have accrued on the loans during the time your loans were discharged due to total and permanent disability.

If your obligation to repay your federal student loans or complete your TEACH Grant service obligation is reinstated, we will notify you of the reinstatement and return your loans to the status that existed at the time you applied for a TPD discharge. The notice of reinstatement will include:

• The reason for reinstatement

• An explanation that the first payment due date on the reinstated loans will be no earlier than 90 days after the date of the notification of reinstatement

• Information on how you may contact us if you have questions about the reinstatement or believe that our determination was based on incorrect information

How will I know if I am eligible to receive a refund?

If you are approved for a TPD discharge, we will instruct your loan holder(s) to return any loan payments received after the date we receive your SSA documentation, licensed medical professional certification, or the effective date of the VA’s disability determination to the person who made the payments. Your loan holder will calculate the amount of your refund and issue the refund to the appropriate parties.

What happens if I want to return to school and receive new loans after receiving a TPD discharge?

If we grant a TPD discharge of your federal student loans or TEACH Grant service obligation, you will not be eligible to receive a new Direct Loan, Perkins Loan, or TEACH Grant in the future unless:

• You obtain a certification from a licensed medical professional that you are able to engage in substantial gainful activity; and

• You sign a statement acknowledging that the new loan or TEACH Grant service obligation cannot be discharged in the future on the basis of any injury or illness present at the time the new loan or TEACH Grant is made, unless your condition substantially deteriorates so that you are again totally and permanently disabled.

In addition, if you are approved for TPD discharge based on SSA documentation or a licensed medical professional’s certification, and you request a new Direct Loan, Perkins Loan, or TEACH Grant during your 3-year post-discharge monitoring period, you must resume repayment on the previously discharged loans or acknowledge that you are once again subject to the terms of your TEACH Grant service obligation before you can receive the new loan or TEACH Grant.

Will a loan discharge affect Medicaid eligibility?

Generally, the loan discharge will not affect Medicaid coverage. For Medicaid beneficiaries whose eligibility is based on “Modified Adjusted Gross Income” (MAGI), the discharge will not affect Medicaid coverage during the three-year monitoring period.

Will a borrower who receives a loan discharge lose access to Medicare?

The loan discharge will not affect a borrower’s eligibility for Medicare and generally will not affect any subsidies a borrower might receive that help him or her pay for Medicare premiums and cost-sharing obligations.