Disabled Veterans can qualify to have Student Loans forgiven in full

[DragonFlyer]

Before this forum was created, I shared my story about how I was working on getting more transparency to the Student Loan Disability Discharge Program and how the investigation with the GAO's offices were progressing. I just got word that the GAO will be bringing this problem in front of Congress...and I am so excited! I love it when I can shake things up in DC and get changes made on behalf of our veterans.

 

http://creditboards.com/forums/index.php?s...400697&st=0

 

I can't believe I hadn't shared this story yet in this forum. I just had an update and realized my error. LOL

 

Feel free to ask me about this program if you need help with your application process. This will forgive your student loans if you are 100% disabled through the VA. You will NOT be required to wait 3 years to prove your disability, either. Yay!

 

Edited October 11, 2009 by DragonFlyer

[Moorlock21]

Receipt of a Title IV loan after the effective date(of the rating) does not disqualify a borrower for a TPD discharge; therefore the Department will not review the borrower's National Student Loan Data System (NSLDS) records for this purpose.

 

If this is correct, I could go and run up $300,000 worth of student loans and then just have them discharged because I was rated 100% Schedular(service connected) in 2004. Another strategy would be to run up student loans and then apply for IU from the VA....huge potential for abuse with this.

 

I knew about the disability discharge, but always assumed that the loans had to be taken out before the disability happened. I can see what they're trying to do here, and I commend them-Say that a disabled vet tries to go to school and takes out loans-maybe they end up dropping or withdrawing from most of the classes...they still owe the loans, and would not have the extra income provided by the degree to help pay off the loans.

 

 

Joe

 

ETA bold are my words to clarify something that was out of context.

Edited October 11, 2009 by Moorlock21

[DragonFlyer]

A few flaws with the interpretation of the information you are seeing.

 

First, the application is to discharge loans incurred PRIOR to becoming disabled. What that is saying is if by chance you did attend school after the date you became disabled, it would not automatically disqualify you from applying for forgiveness of your loans.

 

If you are approved, and later decide to attend any school, not only do you have to get RE-certified by a physician to prove you are capable of attending school, but the new loans are NOT allowed to be discharged later.

 

So, no...you can't run up a bunch of student loans after becoming disabled and get them waived.

[Moorlock21]

Darn another $300,000 down the drain!! Add this to the concurrent receipt fiasco with the new budget (I am currently hoping Obama will veto, but I doubt it) and I'm down some serious coin this month!!!

 

Just kidding...I was bummed about the concurrent receipt though...

 

 

Joe

[DragonFlyer]

What do you mean, "I was bummed about the concurrent receipt"?

 

Is it no longer on the table for 2010? Remember...I have been without any connection to the real world for the last week. I didn't even have cell service, let alone watch the news!

[Moorlock21]

They couldn't find a way to fund it this year...the rules say you can't just add money to the budget without taking it from somewhere else.

 

Joe

[DragonFlyer]

Old news: http://www.military.com/features/0,15240,191302,00.html

 

New news: http://www.airforcetimes.com/news/2009/10/...eceipt_100909w/

 

Holyyyyy....crap. There are 103,000 vets this would have helped. I am speechless.

[sp33d]

I have just over $3,000 in student loans from sallie mae. I am rated 100% through VA and 40% through the Department of Navy....is this in effect still and where do I go? I am gonna look into this, it wold for sure lighten the load on my fixed income...

 

edit: student loans were incurred before I was diabled, so I am good there...

 

also dragonflyer thank you for all your support, I see your screen name all ove this military section. I salute you...

Edited October 21, 2009 by sp33d

[DragonFlyer]

I have just over $3,000 in student loans from sallie mae. I am rated 100% through VA and 40% through the Department of Navy....is this in effect still and where do I go? I am gonna look into this, it wold for sure lighten the load on my fixed income...

 

edit: student loans were incurred before I was diabled, so I am good there...

 

also dragonflyer thank you for all your support, I see your screen name all ove this military section. I salute you...

 

Based on what you've said here, you should qualify! WOOT!

 

Here is the main page for veteran disability discharge of student loans:

http://ifap.ed.gov/disabilitydischarge/va.html

 

Basically, you will fill out the application (no doctor signature required for veterans!) and attach a copy of the VA Rating Decision Letter. It will waive the 3-year waiting period.

 

More on the application and process:

 

 

How to Apply

A veteran applying for TPD must provide a VA Rating Decision or a letter from the Department of Veterans Affairs confirming that the veteran has received one of the qualifying ratings (100% disabled due to one or more service-connected disability conditions or individual unemployability). If the veteran provides this documentation, the veteran is not required to have a physician complete Section 4 of this form or provide any additional documentation related to his or her disabling condition. The veteran applying for TPD will only need to complete Sections 1 and 3 of the TPD application.

 

The veteran should send the completed application and attached VA documentation to his or her loan holder(s).

 

 

Eligible for Discharge

If the veteran qualifies for discharge under this separate process, the veteran will receive immediate discharge and will not be subject to the three-year conditional discharge period. The veteran's loan holder(s) will refund any payments received after the effective date of the grant of disability.

[sp33d]

awesome thank you very much...

[reginaldW]

How can I get my Student Loans discharged. I'm 100% disabiled

 

[snowpuppy]

How can I get my Student Loans discharged. I'm 100% disabiled

You have to call your servicer for an application to have them discharged.

 

Be aware that you will get a 1099 for the amount discharged and you'll pay income taxes on it. A good friend thought this was the way to go! Such a good deal!! Till he got his 1099 for the nearly $40,000 they wrote off. Be sure you can write Uncle Sam a check for what you owe.

 

I can't imagine getting a 1099 for $300,000

[Xer0 SiN]

so...do we have to have these loans before we are awarded 100%? i have no students loans but this program is very beneficial for those that do.

[KristinaB]

Wish I knew about this before I paid mine off

[HooahDOC]

Great, let's create even more reasons for people to abuse the VA disability system. I know there are many veterans who have honorably served and -- unfortunately -- are disabled directly related to their service. There is also a not insignificant percentage who have managed to malinger their way to medical retirement and continue to reap the undeserved services created for those with true need.

 

How about we fix the system first, so we can do a better job of weeding out the ones who exploit it for personal gain?

[OmniCamaro]

Great, let's create even more reasons for people to abuse the VA disability system. I know there are many veterans who have honorably served and -- unfortunately -- are disabled directly related to their service. There is also a not insignificant percentage who have managed to malinger their way to medical retirement and continue to reap the undeserved services created for those with true need.

 

How about we fix the system first, so we can do a better job of weeding out the ones who exploit it for personal gain?

I loath people that only present/create problems. You have just created a problem in a thread that has zero to do with what you apparently have issues with.

A suggestion: either start your own thread where it belongs or actually DO SOMETHING about this problem of yours.

 

Good day.

[MarvBear]

And don't bump a thread so old. You woke me up. And I'm in a lemonade-poor mood, when I loose hibernation time.

 

Now, quit bothering me with this old thread bumping nonsense.

 

Yawn! back to my duties..................zzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz