I read here about loan forgiveness for non-VA rating but can't find it. My husband was injured on the job (traumatic brain and electrical injury} in 2017. In 2019 his worker's compensation physician completed the documents for loan forgiveness. Today, we received a letter from Nelnet informing us that his loans were forgiven and he will be on a three year monitoring period and he has to complete a form every year about his employment and pay. The best news was that his loans will show as paid and zeroed out on the CRAs.
Great - happy that worked out for you. Hope Hubby is doing well and has a full recovery!
I called the TPD office and was told it would take 4-6 months before it shows on the credit reports that they were paid. Is there a chance that the IRS will consider the forgiveness taxable?
@Anonymous wrote:
Congrats on getting the approval. I also believe the forgiven amount is no longer taxable.
Your story will give others in a similar situation hope. Thank you both for sharing.
@Anonymous wrote:
No, new legislation was passed in 2018. It's no longer taxable.
"If you received a TPD discharge of a loan during the period from Jan. 1, 2018 to Dec. 31, 2025, the discharged loan amount won’t be considered income for federal tax purposes."
https://studentaid.gov/manage-loans/forgiveness-cancellation/disability-discharge#is-discharged-amount-taxable
If you don't mind, how long did it take, from application to forgiveness?
Submitted paperwork in late November. Received a response and approval January 7th.