If you have recently become disabled have you have student loans, you may want to take some time to fill out the form to show disability and cancel a student loan. Even though there are very high standards that have to be met when it comes to forgiving a student loan because of a disability, it is routinely done. However, many people who qualify to have their student loans discharged don’t even realize that they qualify for this to happen. So where is the form and what do you have to do to qualify?
To Have Your Loan Discharged, You Must Have a Total Disability
Before you fill out the form to show disability and cancel a student loan, take the time to carefully read the diagnosis of disability that you got from your doctor. If you do not have a complete and total disability that completely prevents you from performing any type of work, then you can certainly try to submit the form, but 99 out of 100 times it is going to be rejected. That’s because the Federal Government and its associated banks that lend out the student loans have very high standards as to what qualifies for a disability discharge. Even individuals who are currently receiving SSI or SSDI don’t necessarily qualify for a discharge because of their disability.
What Happens If They Decide To Forgive My Loan?
The nice thing about having the form to show disability and cancel a student loan filled out is that the government can actually forgive the loan for you. They won’t necessarily even forgive the entire loan, but they generally will forgive the loan through the point of you receiving the diagnosis of a total disability. Even if you have consolidated your loans, if you have received the diagnosis of a total disability, they will not hold this against you unless you consolidated the loans after receiving the diagnosis – but even then, they will usually forgive a substantial portion.
What About Payments I Have Already Made?
The other good news about filling out the form to show disability and cancel a student loan is that upon acceptance, all the payments that you have made after your diagnosis of a total disability have to be refunded by the lender. If you have received that diagnosis, that is great news because you are likely in a position where you need to be scraping for every dollar that you can possibly find right now. If you received the diagnosis three years ago and have made regular monthly payments, you are going to get back all three years of payments on that student loan. That’s right – you can breathe a sigh of relief.
To find the form to show disability and cancel a student loan, you can talk with your local bankruptcy attorney or search the Federal Government’s database of forms for the one that is called the ‘Total and Permanent Disability Cancellation Request.’