Disability + Student Loans

[bartoe]

Hello,

I was wondering if anyone here has been placed on disability who also had student loans?  I was recently diagnosed with RA and my doctor feels that the way the disease is progressing that I will be unable to continue working.  I've been told, that if I am approved for Disability, that i have to show the SL companies that I have only xyz income coming in, not take any loans out etc and after 3-years they will discharge them.  What happens to my credit then?

[guiness56]

Here are some links to read:

http://studentaid.ed.gov/repay-loans/forgiveness-cancellation

http://www.disabilitydischarge.com/home/

The best ones to talk to would be your guarantors.  It also depends on whether they are private or federal.

[remethy]

It's not quite that simple.  If you are approved for disability by Social Security, that does not necessarily mean that your loans would be discharged.  It means you could apply for a disability discharge and then the lender gets to decide if they think you are really completely and permanently disabled.  They don't just do it based on the fact that Social Security has found you disabled.

If your loans are federal loans, you can always request income based repayment (IBR).  They calculate your required payment on a sliding scale based on your income.  If your income is only from SSDI, chances are the required payment would be zero or very little.  You have to reapply for IBR every year.  This can keep your loans in good standing if you aren't able to work, and while the lender tries to decide if you meet their criteria of totally disabled.

[guiness56]

There are 3 different ways to prove you are totally and completely disabled.  The lenders do not decide that for themselves, they are not doctors.  But yes, they do base it on that information.  Either VA, SSI or a statement from your doctor.  Based on that information, they make a decision whether you qualify or not, not whether you are disabled or not,

You submit your application along with the documents.  You can be denied if you do not submit what is needed.