If you received the TPD discharge before Jan. 1, 2018, the loan amount might be considered income for federal tax purposes as outlined by the Internal Revenue Service. If you received the TPD discharge during the period from Jan. 31, 2025, the discharge amount is not considered income for federal tax purposes.

How long does a student loan discharge take?

How long does the total and permanent disability (TPD) discharge application process take? It typically takes less than 30 days to complete our review of the TPD discharge application. If your discharge application is incomplete or if a physician’s response is held up, these can cause delays in the review process.

Can you discharge a student loan with a disability?

Student loan disability discharge: requirements. If you’re a federal student loan borrower facing long-term disability and can’t work, you may be eligible for student loan forgiveness through Total and Permanent Disability discharge (TPD). Nelnet assists the education department with this program.

Is there a student loan forgiveness program for disability?

The official name of student loan forgiveness for disability is Total and Permanent Disability Discharge. This program involves Direct, FFEL, and Perkins loans, which means most federal loans qualify for discharge. Meanwhile, only a few private student loan lenders provide this opportunity.

What happens when you get a total and permanent disability discharge?

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.

What does TPD stand for in student loan discharge?

Total and Permanent Disability (TPD) discharge is a program created by the U.S. Department of Education. It relieves the disabled borrower from having to repay federal student loans or TEACH Grant service obligations. Nelnet, a student loan servicer, assists the Department of Education with this process.