If you're on disability and struggling with student loan debt, you may qualify to have your loans completely forgiven. The Total and Permanent Disability (TPD) Discharge program can eliminate your federal student loans.
In this article, we'll cover:
- What TPD Discharge is
- Who qualifies
- How to apply
- What happens after approval
- Important things to know
1. What TPD Discharge Is
Total and Permanent Disability Discharge is a federal program that forgives student loan debt for borrowers who can't work due to a severe disability.
What gets discharged:
- Federal Direct Loans
- FFEL Program Loans
- Perkins Loans
- TEACH Grant service obligations
What doesn't get discharged:
- Private student loans
- State student loans
- Parent PLUS loans (with some exceptions)
Important: TPD Discharge is different from bankruptcy. You don't need to go to court, and there's no cost to apply.
2. Who Qualifies
You may qualify for TPD Discharge if you meet ONE of these criteria:
SSA Determination:
- You receive SSDI or SSI
- Your next disability review is 5-7 years out
- SSA has classified your disability as permanent
VA Determination:
- VA rates you as 100% disabled, or
- VA rates you as unemployable due to service-connected disability
Physician Certification:
- A doctor certifies you can't work and earn above SGA
- The condition has lasted or is expected to last 60+ months, or result in death
Automatic discharge: If SSA or VA has already determined you're permanently disabled, you may receive automatic discharge without applying.
3. How to Apply
Step 1: Check for automatic discharge
The Department of Education may automatically discharge your loans if:
- SSA classifies your disability as permanent (MINE or MIP code)
- You're already in the TPD system
Check nelnet.com/tpd or call 1-888-303-7818 to see if you qualify automatically.
Step 2: Apply online
If not automatic, apply at disabilitydischarge.com:
- Create an account
- Select your documentation type (SSA, VA, or Physician)
- Upload required documents
- Submit your application
Required documents:
- For SSA: Your benefit verification letter showing disability status
- For VA: Your VA disability rating letter
- For Physician: Completed TPD certification form
Step 3: Wait for processing
Processing times vary:
- Automatic (SSA/VA): May be immediate
- Application-based: 30-90 days typically
4. What Happens After Approval
Once approved:
Loans are discharged: Your balance goes to $0
No more payments: You're not required to pay anything
Credit reporting: The discharged debt is removed from your credit report
Three-year monitoring (physician certification only):
- If you used a physician certification, you must report income for 3 years
- If earnings exceed SGA, loans may be reinstated
- SSA and VA routes have no monitoring period
5. Important Things to Know
Tax implications:
- Discharged debt is NOT taxable through 2025
- This tax exclusion may be extended—check current rules
Refunds possible:
- Payments made after you became disabled may be refundable
- Ask about refunds when you apply
Future loans:
- You can borrow again after discharge
- But new loans won't be automatically discharged
Don't ignore this:
- Many eligible people never apply
- Check your status even if you're unsure
Important: If you're already receiving SSI or SSDI, you likely qualify. It's worth checking—you could eliminate thousands in debt.
How Purple Helps
While Purple doesn't handle student loans directly, we help you manage your disability benefits:
- Track all your income in one place
- Stay under SSI resource limits
- Get benefits up to 4 days early
- Keep your finances organized