Disability

How Does Qualifying for Social Security Disability Affect My Student Loans?

Written by Steve Rhode

Question:

Dear Steve,

How does qualifying go Disability SS affect my student loans with Navient?

Horses

Answer:

Dear Horses,

If the student loans are private loans then it doesn’t matter at all.

If they are federal student loans then it would not automatically affect your loans but the determination would be helpful if you applied for a Total and Permanent Disability (TPD) Discharge.

The government does say they monitor the Social Security determinations but I have limited confidence they will always make the connection with the loan.

The Department of Education says, “If we have received information from the Social Security Administration (SSA) indicating that you are receiving Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) benefits and that your next scheduled disability review will be within 5 to 7 years from the date of your most recent SSA disability determination, we will contact you and explain how you may apply for a TPD discharge, but you will not need to submit documentation of your SSA disability determination. We regularly receive information from SSA identifying individuals who may qualify for TPD discharge.

If you receive SSDI or SSI benefits and your next scheduled disability review will be within 5 to 7 years from the date of your most recent SSA disability determination but we did not contact you about a TPD discharge, you can apply and provide documentation of your SSA notice of award for SSDI, SSI benefits or a Benefits Planning Query (BPQY form 2459) stating that your next scheduled disability review will be within 5 to 7 years from the date of your most recent SSA disability determination.” – Source

If you want to apply for forgiveness and discharge of your federal student loans because you are discharged, this is the link to apply.

I would not count on the government making the connection and instead, apply to start things rolling.

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Sincerly,
Steve

You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.





About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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