Loan discharged due to disability?

[breathing_easier]

Has anyone here had their student loan forgiven due to permanent disability?

[LynnInMN]

Do you have specific questions?? I have dealt with many disablility applicants.

[breathing_easier]

Lynn: Was wondering what the qualifications for "permanently disabled" are for student loan forgiveness and what type of documention is required. Individual is receiving full SSDI benefits.

[LynnInMN]

Basic rule is that the condition must not pre-date the loan and that the disability is total and permanent. You must not be able to work again ever at any job.

<<This bulletin addresses total and permanent disability discharge policy changes that become effective July 1, 2002. As noted in the Nov. 1, 2000 Federal Register, effective July 1, 2002, borrowers who are initially determined to meet the eligibility criteria of total and permanent disability will have their loans conditionally discharged for up to three years from the date the borrower became totally and permanently disabled, as determined by the physician. Section 682.200( of the federal regulations defines total and permanent disability as a condition in which a borrower must be unable to work or earn money because of an injury or illness that is expected to continue indefinitely or result in death.

If the borrower satisfies the criteria for a total and permanent disability discharge throughout the conditional discharge period, the balance of the loan is discharged at the end of the conditional discharge period. The following overview provides a summary of the guidance for lenders and holders in the implementation of the new total and permanent disability discharge procedures. Additional information and clarification about the notices lenders must send to the borrower have been addressed in a Dear Colleague Letter (DCL) that was published by the U.S. Department of Education (ED) on May 29, 2002, and lenders and servicers are urged to review this guidance immediately. A copy is available on ED's Web site, www.ifap.ed.gov.>>

[breathing_easier]

Thanks, Lynn. I'll do the required reading at the link you provided.

The individual in question is having difficulty tracking down the doctor(s) who diagnosed her illnesses and, thus, has been unable to complete that portion of her loan discharge application. SSDI has granted disability benefits and she was hoping that proof of that would be enough to grant the loan discharge. However, that appears not to be the case.

[verndiver]

I had my student loans discharged about a year ago on the grounds of disability. Now some politician in DC has reinstated my student loans citing their DR.'s don't agree with my treating physician’s diagnosis. What are my options? Thanks

[LynnInMN]

I had my student loans discharged about a year ago on the grounds of disability. Now some politician in DC has reinstated my student loans citing their DR.'s don't agree with my treating physician’s diagnosis. What are my options? Thanks

If you read up in the thread, I believe you were conditinally discharged....

As noted in the Nov. 1, 2000 Federal Register, effective July 1, 2002, borrowers who are initially determined to meet the eligibility criteria of total and permanent disability will have their loans conditionally discharged for up to three years from the date the borrower became totally and permanently disabled, as determined by the physician. Section 682.200( of the federal regulations defines total and permanent disability as a condition in which a borrower must be unable to work or earn money because of an injury or illness that is expected to continue indefinitely or result in death.

If the borrower satisfies the criteria for a total and permanent disability discharge throughout the conditional discharge period, the balance of the loan is discharged at the end of the conditional discharge period. The following overview provides a summary of the guidance for lenders and holders in the implementation of the new total and permanent disability discharge procedures. Additional information and clarification about the notices lenders must send to the borrower have been addressed in a Dear Colleague Letter (DCL) that was published by the U.S. Department of Education (ED) on May 29, 2002, and lenders and servicers are urged to review this guidance immediately. A copy is available on ED's Web site, www.ifap.ed.gov.>>

[verndiver]

Thanks for the fast reply.

Now for the whole story......

12 years ago I had attended Firefighter / EMT school for career purposes. Upon completing school and passing the state boards, I was informed by a recruiter for the Hillsborough county Fire Dept, that I could not be hired due to the fact I collect a disability pension from the military. I had used the Veterans Preference option to enroll and subsequently secure my student loans, so it was obvious to the School and instructors that I did have a disability, even though it did not prevent me from performing in class and passing the State exams. Had I been aware of this policy I would have chosen a differnt carrer path.

Obviously 2 years of school and about $14000 had been wasted. A Special Master agreed that the school was required to prescreen applicants for the Firefighter academy, when Garnishment proceeding were filed. It was then recommended that file to have the loans discharged based on the disability that I was being denied employment.

Do I have any recourse with the school? Thanks again.

[LynnInMN]

Thanks for the fast reply.

Now for the whole story......

12 years ago I had attended Firefighter / EMT school for career purposes. Upon completing school and passing the state boards, I was informed by a recruiter for the Hillsborough county Fire Dept, that I could not be hired due to the fact I collect a disability pension from the military. I had used the Veterans Preference option to enroll and subsequently secure my student loans, so it was obvious to the School and instructors that I did have a disability, even though it did not prevent me from performing in class and passing the State exams. Had I been aware of this policy I would have chosen a differnt carrer path.

Obviously 2 years of school and about $14000 had been wasted. A Special Master agreed that the school was required to prescreen applicants for the Firefighter academy, when Garnishment proceeding were filed. It was then recommended that file to have the loans discharged based on the disability that I was being denied employment.

Do I have any recourse with the school? Thanks again.

Ok, the issue at hand in not disability but an ability to benefit. Is the policy that prevented you from being employed a policy of of Hillsborough Fire Department or all fire departments?? Is your disability visible?? Did you fully disclose the disability upon application to the school? Did you investigate whether or not your disability would prevent you from doing your job or getting employment. Using a vetrans option does not necessarily disclose a disability and for the most part unless you tell instructors of medical problems, they are left unaware.

The state certified you by passing the exams...what is Hillsboroughs problem??

This is a complicated issue. Could you have been employed by a private ambulance company as an EMT?? Did you try other departments?

Another issue you will come up against is that a lot of people go to school for a careers and dont get employed in that field.

[verndiver]

Hi Lynn,

The policy not to hire persons with compensable disabilites is the same for all Fire Depts ( in the State of Fla anyway) as well as all law enforement agencies as well. The Law enforcement part I knew of, as I was hired 18 months before my discharge by the Florida Marine Patrol and then released after my accident.

According to the fire dept recruiter, the nature of the disability was irrelavent, the fact I was collecting a pension for it seemed more the issue. l In fact there were physical tasks during the training that I could perform that 65% of the class could not. I more than proved that I could do the work. BTW the nature of my injury was a broken leg that I collect 20% pension. Not what I would consider a major impairment.

I fully disclosed my disabilty to the school primarily because there was a 2 year wait to get into the academy and being a disabled veteran put me to the top of the list. Plus new students are interviewed by the instructors prior to starting class in the academy.

I did look into other private EMT companies, but down here they only pay $7-8hr, where the Fire Dept paid FF/EMT's almost $40k to start.

Needless to say that at $40k a year I could have paid my student loans in my sleep. My issue is not so much that I owe the loans, and more that I feel I was scammed by the school , but I am still stuck with the bill.

Thanks again,

[LynnInMN]

Could you have applied to another department without disclosing the injury?? Seems dumb for a broken leg. It just seems ridiculous that the state would certify you fit but the departments do not. Was there anyway to appeal that decision???

I think the issue you are going to come up against is that you could have worked as a private EMT. Going to school does not promise to get you a job.