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Total and Permanent Disability (TPD) Discharge

The Total and Permanent Disability (TPD) Discharge program allows borrowers who have a disability that prevents them from being able to work or engage in “substantially gainful activity” to receive a full loan discharge. The rules have been expanded and those changes will go into effect July 1, 2023.


There are three ways to qualify for a TPD discharge, some are automatic (or, require no action on your part). These are:


  • Veteran Affairs Disability: If you have been certified as 100% disabled by the VA, you automatically qualify for a discharge.

  • Social Security Administration: If you are eligible for Social Security Administration Disability benefits or Supplemental Social Security Income, you may qualify for TPD discharge. Some of these discharges may be automatic.

  • Physician’s Certification: Your physician (MD) or Doctor of Osteopathic Medicine (DO) must submit a form certifying that you are unable to engage in any substantial gainful activity by reason of a medically determinable physical or mental impairment that:

    • Can be expected to result in death;

    • Has lasted for a continuous period of not less than 60 months; or

    • Can be expected to last for a continuous period of not less than 60 months.


While there is currently a 3-year income monitoring period in effect; the new rules going into effect on July 1, 2023, get rid of this requirement. The new rules also expand the SSA benefits that qualify one for TPD discharge.


You can apply for TPD online here and find more information on the application process here.


For more information, visit the following resources:


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