Disabled Veterans Get Full Student Loan Discharge

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More money options for college when disabled veterans have are 100% disabled.

Good news, disabled veterans might qualify for a full student loan forgiveness of federal loans.

For many college students, student loans are a necessary evil that require many years of repayment.

For some disabled veterans, the Department of Education has created a waiver called, “student loan discharge.” Disabled veterans who have a 100 percent Total and Permanent disability rating or disabled vets who received a rating of Individual Unemployability (IU) will usually qualify for the student loan discharge.

This means a lot of things for disabled veterans in numerous situations, whether using Vocational Rehabilitation, the GI Bill, or other avenues for attaining their college degrees.

For more information, click here to get the full student loan discharge.

The complete guide to disabled veterans using Vocational Rehabilitation. Don't get screwed - get the facts.

What this means. For disabled vets struggling with their VA Vocational Rehabilitation Counselors or struggling to get an advanced degree covered by a VA Benefits program, you may have a solution with student loan discharge if you’ve taken out student loans already.

Here is what I mean. Many times, Vocational Rehabilitation Counselors will tell veterans they are “too disabled” be rehabilitated. If this happens, some veterans will qualify for a rating to Total Disability Individual Unemployability.

If you meet the requirements for the federal student loan discharge option, you could essentially pay for your degree via student loans, apply for the benefit, and have the loans totally discharged.

While this doesn’t apply to all forms of student loans, disabled vets may be able to successfully have their federal student loans forgiven.

If you qualify, look into the program to apply. Most operators do not understand much about disabilities with the Dept of Veterans Affairs. For that reason, you’ll need to do your research.

sharon
sharon

I would like to know how authentic this information is concerning student loan waiver.
I understand that if you are a disabled vet and you go for an advance degree. I can take out student loans and not have to pay back because i can get a waiver. Do you have to be 100%?

Were can I find more information on this?

sharon

Ben Krause
Marybeth Sondergaard
Marybeth Sondergaard
I really need help I hope you can give me someone to turn to for assistance. My son is a disabled veteran from Iraq. When he first returned to the states he attempted for a few years to obtain some kind of college certification. Unforturnately due to his disability was completely unable to continue to go to college. He is deemed completely unemployable by the VA, and he can’t work. The money he gets for his disability put a roof… Read more »
michelle winslow
michelle winslow

I am 80% veteran diabled. I am trying a vet voc rehab program for a 1year and really struggling even parttime college. I already have a bachelors and masters before my disability worsened. I am asking about student loan forgiveness for previous loans, 100,000 dollars

Ben Krause

Good luck with that and let me know how it goes. It’s supposed to be easy for vets with 100% Total and Permanent or with 100% TDIU. Did you get the TDIU increase to 100%?

Allan K.
Allan K.
Michelle, I received a student loan loan discharge under the old system in April of 2007, after a 3 year conditional period, in which I made no income. I have not worked since JAN 2000.You must be 100% VA disabled or IU to get your discharge for applications after 1 july 2010, and you are monitored for 3 years after and cannot make above the poverty level for a family of 2, regardless of your family size, or the discharge… Read more »
Roger Fennell
Roger Fennell

If a 100% disabled veteran assumed responsibility for student loans of minor children before he or she became disabled, can this 100% veteran obtain forgiveness of the loans?

If a 100% diabled American veteran assumes responsibility for the student loans of minor children before being granted 100% disability, can the student loans be modified or forgiven?

Roger Fennell

Lewis London Mobley
Lewis London Mobley

I have a student loan that I can’t afford to re-pay because of my disability. I’m at 90% for now I’m waiting on the ruling on a claim for 100%. How can I apply for forgiveness of these loans?

Elton Hammonds
Elton Hammonds
As a fellow service connected disabled vet, my advice would expect to first file for Social Security Disability Insurance. That will require a lawyer that will be paid once you’re approved, which can take 2-3 years, but you get backpay for the time it took, minus the lawyer’s fee that may not exceed $6000. Then you take that certification letter to a veterans service organization and file for Individual Unemployability with the VA, which pays you at the 100% disability… Read more »
ROBERT DAVIS
Mr. Krause, I’m 100% total and permanent veteran that teach H.S. Jrotc in Chicago Public Schools. My Chicago Voc rehab counselor and the V.A denied me the opportunity to go for my Masters degree, stating I have adequate employment. I can never be too qualified to educated the young people and our future leaders. Please give me advice on what is needed to move past this road block. Thanks!
Fary
Fary

Hi:

Were you able to get into the program?

ken brown
ken brown

i just got rated 100% by the va sept 2010 can i apply for student loan forgiveness even though i am not permenant and total yet

Gaylynn Mikasa
Gaylynn Mikasa

I have a 27 year old son when he was 19 wanted to go to ITT. So I had to sign the loan for him. He has since then gone in the Army and is now retired 7/14/2010 he is 100% disabled (blind). Can he get his student loan cut in half or totally waive?

Elton Hammonds
Elton Hammonds

Check my reply above to get your son’s loan forgiven.

Jo
Jo

Do you have the new link for more information on student loan forgiveness in relation to disabled vets? I clicked the link above in your blog (http://ifap.ed.gov/disabilitydischarge/va.html) but the Department of Education redid their site and moved it someplace “secret” :). Thanks for the heads up; I was totally unaware of this new forgiveness rule.

Veterans Directory
Since employment for many veterans has not been a viable option many have opted to start their own businesses. For this very reason we are on a mission to support these “Service Disabled Veteran Owned Small Businesses” VeteransDirectory.com AKA The “Wounded Warrior Directory” is a directory of over 5000 businesses where the veteran owner has a disability that occurred in the service to their country and deserve our support. Please help us in this mission to promote and support Service… Read more »
george
im on a [non service connected] va pension as my only source of income. im beiting hounded and threatened by a collections agency for student loan people, from some 1700 dollar student loan i took out in the early 1980s and since i ve lived hand to mouth since that time i never paid a dime on it. i thought theyd forgot about it since i had not heard from them since 2 q001. well, just before the holidays this… Read more »
Louis Shopen

Google collection agency abuse. There is some government agency you can complain to about their abusive tactics.

turk
turk

I am 100% disabled, Service connected, and yes, I have received a full discharge of my student loan, a $35,000.00 load total.

Here is a link to the application.http://www2.ed.gov/offices/OSFAP/DCS/forms/disable.pdf

It took 11 months for the decision to be finalized for the loan discharge so please do not get discouraged.

Here is another link with similar information.http://torreyshannon.com/2011/07/did-you-know-disabled-veterans-may-apply-for-student-loan-discharge-and-forgiveness/

God Bless you all in your efforts.

Tammy
Tammy

I was also forgiving through nelnet, but ACS (Bank of America) is giving me a hard time. I don’t get it.

Lenora
Lenora
I am a disabled veteran but they only will give be 20 percent and I have been fighting for an upgrade for the pass three years and no one is trying to help me and I am a full time student pursing a degree in child development, I am in desperate need for help paying off my student loan–I am currently not employed and it is getting very stressful because they are trying to fight my benefits. “What can I… Read more »
Michael H
The million dollar question is, “Is the forgiven loan taxable income?” I have reviewed the topic extensively and spoken with officials, public and private, but the answer is never definitive. Some say, well if a 1099 is not issued then it is not taxable, while others compare the forgiveness to any type of loan forgiveness and say it is taxable, but there are exceptions to the taxable answer and the loan forgiveness for a disabled veteran seems to logically point… Read more »
Andrea
Andrea

You will receive a 1099-c from the Dept of Education or whichever agency services your loan. The debt (amount forgiven plus interest) is fully taxable. There are no exceptions in the tax code for disabled veterans. It is considered income and not a gift, and is therefore TAXABLE at whatever your rate is.

andrea
andrea
Also, if you are receiving Social Security Disability, this income will become taxable also if you exceed the income limitations. I received a $80,000 debt forgiveness. After deductions, I owe $6667.00 in taxes on the loan forgiveness and $3300 on $11,000 of my Social Security income. $10,000 due to the IRS! So, it is not over once your loans are forgiven. You will still be held accountable to another government agency for the the taxes on the debt that was… Read more »
Phillip Hammer
Phillip Hammer
I was a Sgt in the Army I got out in o6, I have knee lower back nneck and stomach problems and mental stressor issues. I have 25.000 dollar private student loan debt that when I took out the loan was not a student loan but between 2006 and now it became a student loan and I could not waive it in 2009 durring bankrupcy and have been struggleing to afford payments and bring down the principle. I need help… Read more »
David

I’ve been designated by the Department of Veteran Affairs as 100% Unemployable. Do you know if a Student Loan COSIGN can be forgiven. My wife and I have cosigned on some of my unemployed son’s Student Loans. Consequently, Sallie Mae has put a judgement lien on our condo.

rsuarez55
rsuarez55

can I get bad credit for doing this?  I’ve already gotten bad credit, although I am a 100% disabled Vet..is there US Code I can quote to get this off my credit report?
 

Eric Smith

I found out that my disability will likely not help me obtain forgiveness of my student loan. I need to die in order for that to take place. So I will fully cooperate by dieing.

PVT. Joe Snuffy
PVT. Joe Snuffy

funny Eric

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The trick right now is to find a career where you can make a decent living and not owe an arm and a leg. For that reason we have started a veteran friendly network of companies owned by veterans and veteran drivers such as Winchester Limo We’ll also be helping veterans with some training to teach the in and outs of the limo industry and hopefully be able to offer some job placement in the network. Check us out at… Read more »
Veteran Limo

WRONG Link in comment text above — Winchester Limo <— Corrected! It's important so others can see what were doing to help hire veterans. The correct URL is WinchesterLimousines.com and Not WinchesterLimousine.com Thanks!

Winchester Limo
The trick right now is to find a career where you can make a decent living and not owe an arm and a leg. For that reason we have started a veteran friendly network of companies owned by veterans and veteran drivers such as Winchester Limo. We’ll also be helping veterans with some training to teach the in and outs of the limo industry and hopefully be able to offer some job placement in the network. Check us out at… Read more »
namnibor
I am an 80% Service-Connected, paid to 100% via Individual Unemployability and since also now given “Permenant & Total Disability” and I had Federal Student Loans for an almost finished BA that am not finishing as 14 medications and consequent health issues make concentration and mobility an issue and is not like my nature to give-up on anything. My Student Loans were consolidated but managed by a student loan firm in New York and Pittsburgh, yet the “GAURRANTOR FIRM” was… Read more »
margie
margie

It was a simple question…damn!!!

DAV 100%,

Dont need UI if you have 100% SERVICE CONNECTED. If you have less then 100% SERVICE CONNEDED (is key) then u need UI

Tammy
Tammy

I am a little confused. I am 100% but not unemployable, nelnet accepted my application and the Department of Education accepted it. But ACS rejected me, which means they are over riding the Department of Education; they accept both 100%. My doctor even sent a letter and they rejected it. Has anyone else had this problem

DAV 100%,
If you are rated 100% disabled SERVICE CONNECTED veteran by VA then all you have to do is contact each of your Loan holders and submit a form requesting discharge. Then they send this on to dept of education for approval and loans discharged. web site http://www.disabilitydischarge.com for information, any person disable can do this, but vet with VA rating of lets you skip 3 year doctor monitored waiting period for discharge. VA are instant once approved. ALso while waiting… Read more »
Kim
Kim

This is the first comment I’ve read that has helped me. Thank you very much.

jazz
jazz

FAKE: NELNET does what they want once they ‘refer to govt for collection’. They also collet when IN CLASS and IN ECON.HARDSHIP DEFERMENT, desipite regulations to cease this.I have recieved numerous war dialing calls for collections since discharge from service with medical separation. My acounts got upgraded to 60%, exceeding nelnet’s 50% as REQUIRED on thier paperwork, now WHO UPPED THIS TO 100%?

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