Total and Permanent Disability

Am I eligible for this discharge?

You are eligible for this discharge if you:

  • Are unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that has lasted (or will last) continuously for at least 60 months or could result in death
  • Are a veteran who is unemployable due to a service-connected condition

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Are all of my loans eligible?

The following loans are eligible for this discharge:

  • Federal Stafford Loans (subsidized and unsubsidized)
  • Federal Supplemental Loans for Students (SLS)
  • Federal PLUS Loans
  • Federal Consolidation Loans

NOTE: If you have a spousal Consolidation Loan and only one spouse is disabled and eligible for the discharge, both spouses are still responsible for paying the portion of the loan that originally belonged to the nondisabled spouse. To discharge the entire spousal Consolidation Loan, both spouses must be eligible for a discharge.

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How do I apply?

It's easy to apply:

Step Details
Step 1. Download and print the application.

Select from the following:
Step 2. Complete the application.

Fill out Sections 1 and 3 only.
Step 3. If applicable, have your doctor complete the required sections.

If you are not a veteran, your doctor must complete Section 4. The doctor must be a doctor of medicine (MD) or a doctor of osteopathy (DO) who is legally authorized to practice medicine in the United States or its territories.

If you are a veteran, your doctor does not need to complete the form as long as you supply documentation from the U.S. Department of Veterans Affairs showing that you have been determined to be unemployable due to a service-connected condition.
Step 4. Mail the application.

Please mail the application with your original signature and any supporting documents to:

American Education Services
Attn: DDB
P.O. Box 8183
Harrisburg, PA 17105-9972

NOTE: Do not fax the application.

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What if I make an error on my application?

If you or anyone else makes an error and corrects it on the application, you must include a letter of explanation with the application as to why the change—a typographical error, human error, an error in the medical record, or new information—was necessary. This letter must also include the original signature of the person who made the change.

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I am a veteran. What if I forget to send the required documentation from the U.S. Department of Veterans Affairs?

You must send with your application your documentation from the U.S. Department of Veterans Affairs showing that you have been determined to be unemployable due to a service-connected condition. If you do not include this necessary information with your application, we will return the application to you.

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What happens after you receive my application?

If your application is not complete, we will return the application to you.

If your application is complete, we will transfer your loan to the U.S. Department of Education's Total and Permanent Disability Discharge Servicer. The Total and Permanent Disability Discharge Servicer determines your eligibility for discharge.

If you are not a veteran: The U.S. Department of Education will monitor your discharge status for up to 3 years. Your discharge will be revoked and the loan reinstated if any of the following occurs during this monitoring period:

  • You receive annual earnings from employment that exceed 100% of the poverty line for a family of two.
  • You receive a new TEACH (Teacher Education Assistance for College and Higher Education) Grant or new federal loan (except for a Consolidation Loan that includes loans that were not discharged).
  • You fail to repay within 120 days any disbursement received after your discharge on a TEACH Grant or federal loan received before the discharge.

If your loan is reinstated, you must repay it. However, you are not responsible for paying any interest that accrued between the discharge date and the date the loan is reinstated.

If you are a veteran: There is no post-discharge monitoring period. Any payments that you made on or after the date of your disability, as determined by the U.S. Department of Veterans Affairs, will be refunded to you.

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