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Disability discharge of loans & person gets better?


confuseddebtor
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I've been stringing my discharge papers along for years hoping I'll improve enough to resume employment. My doctor is ready to sign papers at anytime, but I keep praying for a healing. Well, what happens if I do have my student loans discharged due to permanent disability, and I get better and return to work(Lord willing)? Will I be responsible for paying off the debt later plus additional fees during the time the loan was discharged? Nothing is impossible for God, so I keep praying and hoping.

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Well, what happens if I do have my student loans discharged due to permanent disability, and I get better and return to work(Lord willing)?

Honestly, even if you qualified for social security permanent disability, you probably wouldn't qualify for student loan discharge.

Here, however is the guideline:

"Beginning July 1, 2002, a borrower who is determined to be totally and permanently disabled will have his or her loan placed in a conditional discharge period for three years from the date the borrower became totally and permanently disabled. During this conditional period, the borrower doesn’t have to pay principal or interest. If the borrower continues to meet the total-and-permanent disability requirements during, and at the end of, the three-year conditional period, the borrower’s obligation to repay the loan is canceled. If the borrower doesn’t continue to meet the cancellation requirements, the borrower must resume payment. Total and permanent disability is defined as the inability to work and earn money because of an injury or illness that is expected to continue indefinitely or to result in death. More information on this discharge can be found in the promissory note and by contacting the loan holder."

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Honestly, even if you qualified for social security permanent disability, you probably wouldn't qualify for student loan discharge.

Yes I've heard this from many people, and I've known a few who were shocked to have their loans discharged, and others who were shocked they couldn't get them dischared. So, I'll just stay optimistic and if it comes to that, it won't hurt to try. Thanks for the information.

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I used to work for a guarantee agency. No offense, but Christopher Reeves would have had a hard tme getting a discharg for disability from us.

How come? Strict guidelines? Then again...in all fairness, I've seen disabled people work. Perhaps what they mean by "total and permanent" disability is the persons inability to continue working BECAUSE of their condition...Christopher Reeve (Bless his heart and soul) continued to work even though he was wheelchair bound.

Elyse

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How come? Strict guidelines?

There have been many news stories about terminal AIDS and cancer patients who were hospital-ridden and not given discharges and who, because of limited deferments for illness, were being hounded for money. I guess they figure that death is a discharge.

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There have been many news stories about terminal AIDS and cancer patients who were hospital-ridden and not given discharges and who, because of limited deferments for illness, were being hounded for money. I guess they figure that death is a discharge.

How disgusting is that! ::BigGun::

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When I first started collecting in the early 90's, just having HIV could get you a discharge. However, with medical research and the progress that drug therapies are making, you basically have to be hospice bound before a discharge can happen.

I remember one borrower I used to call monthly to authorization for direct debit. He had HIV and actually worked in a big research facility doing HIV research. Due to illness and time off work, I was flexible with his payments. He always paid....in fact he told me that the only reason he would miss his payment would be due to his death. I remember one month trying to reach him 3 days in a row. On the 4 day, his partner called informing me that he had passed away the previous weekend. I apparently was on a list of contacts that needed to be called, and his partner thank me for working with him. The partner was in default on his loan, and his collector was not being as accomadating.

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When I first started collecting in the early 90's, just having HIV could get you a discharge. However, with medical research and the progress that drug therapies are making, you basically have to be hospice bound before a discharge can happen.

I remember one borrower I used to call monthly to authorization for direct debit. He had HIV and actually worked in a big research facility doing HIV research. Due to illness and time off work, I was flexible with his payments. He always paid....in fact he told me that the only reason he would miss his payment would be due to his death. I remember one month trying to reach him 3 days in a row. On the 4 day, his partner called informing me that he had passed away the previous weekend. I apparently was on a list of contacts that needed to be called, and his partner thank me for working with him. The partner was in default on his loan, and his collector was not being as accomadating.

Lynn, thanks for a great story, and it echos what I've heard about student loans.

I had a friend who died of glioblastoma multiforme (brain cancer) and who wasn't eligible for more deferments for illness after a while because she'd used up hers, and she'd been denied a discharge despite the truly bad prognosis for her cancer. She was only starting the paperwork for another go at a discharge when she died.

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  • 1 month later...

Go ahead and apply for the discharge and see what happens.

A friend of mine (on permanent disability) was able to get his discharged without too much problem.

In his case they started the three year clock from the time the disability started and NOT the time of the discharge claim.

His whole process was over in less than 6-months and he said he only had to fill out a few forms.

As always, your mileage may vary.

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  • 3 weeks later...
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