If you’re a veteran disabled in the line of duty, you may be eligible for student loan forgiveness. Veterans with a 100% Total Disability Individual Unemployability (TDIU) or Total and Permanent Disability (TPD) rating can qualify for federal student loan forgiveness through an expedited process. Here’s what you need to know about applying and qualifying for this program.
The Disabled Veteran Student Loan Program
Veterans with a 100% TDIU or TPD rating can have their federal student loans discharged. Thanks to program updates, applying is now faster and easier. Once approved:
- Loans are forgiven.
- Payments made after your disability determination date are refunded.
- The process is entirely online and takes about 20 minutes.
Additionally, the Education Department identifies eligible veterans and notifies them. Veterans then have a 60-day window to opt out before their loans are automatically canceled.
How to Check Your VA Disability Rating
To qualify, you’ll need to confirm your disability rating. Here’s how:
- Log in to your VA eBenefits account.
- Select the “Disabilities” link.
- Navigate to “Documents and Records” under “Manage.”
- Download your benefit summary to view your current rating.
Qualifying for Loan Discharge Under TPD
To apply for a TPD loan discharge:
- Submit the TPD application.
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Provide documentation, such as:
- Your VA disability rating.
- Social Security Administration documents.
- A physician’s certification.
- Attach supporting evidence and have a medical professional complete the required form sections.
Veterans Affairs representatives can assist you with the application process.
Important Notes About Loan Discharge
Loans discharged between Jan. 1, 2018, and Dec. 31, 2025, are not considered taxable income.
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Monitoring Period: There’s a three-year post-discharge period during which you’ll need to meet certain conditions to maintain your forgiveness, such as:
- Avoiding new federal loans or TEACH grants.
- Keeping annual earnings within poverty guidelines.
- Tax Implications: Loans discharged before Jan. 1, 2018, may count as taxable income.
Frequently Asked Questions (FAQ)
Do disabled veterans qualify for student loan forgiveness?
Yes, veterans with a 100% TDIU or TPD rating qualify for federal student loan forgiveness.
Does 100% VA disability pay off student loans?
No, veterans must apply for the federal student loan forgiveness program to have their loans discharged.
Which veterans are eligible for student loan forgiveness?
Veterans with a 100% TDIU rating or TPD designation are eligible for loan forgiveness and TEACH loan discharge.
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