Eligibility
You qualify for TPD discharge if you're totally and permanently disabled as documented by: a certification from a physician, nurse practitioner, physician assistant, or psychologist that you're unable to engage in substantial gainful activity due to a physical or mental impairment that can be expected to result in death, has lasted at least 60 months, or can be expected to last at least 60 months. Alternatively: Social Security Administration disability data, or a VA determination that you are unemployable due to a service-connected disability (34 CFR 685.102, 685.213).
VA and SSA determinations are the easiest path - the Department of Education accepts these directly without additional medical documentation. Physician certification requires a specific form and is subject to more scrutiny.
Application Process
Step 1: Apply on StudentAid.gov (StudentAid.gov/disabilitydischarge), where TPD applications have been handled since March 23, 2025. Step 2: Submit documentation: SSA disability information, a VA unemployability determination, or a medical professional's certification. Step 3: The Department of Education reviews the application. Step 4: If approved, your loans are discharged.
After discharge, there is no income monitoring. For a discharge based on SSA data or a medical professional's certification, the Department of Education reinstates the loan only if, within 3 years after the discharge, you receive a new Direct Loan or TEACH Grant (34 CFR 685.213(b)(7)). The discharge is not reversed because your income rises.
Tax Treatment and Other Considerations
A TPD discharge is excluded from federal income under 26 USC 108(f)(5), which as currently written has no end date. The insolvency exclusion may apply if you have more debts than assets.
Important: TPD discharge also cancels TEACH Grant service obligations for disabled teachers. If you received TEACH grants but can't complete the service requirement due to disability, apply for TPD discharge to prevent the grants from converting to loans.
Frequently Asked Questions
Can I work and still get TPD discharge?
There is no income monitoring after a TPD discharge under the current rules, so earnings do not reinstate the loans. For a discharge based on SSA data or a medical certification, the loan is reinstated only if you receive a new Direct Loan or TEACH Grant within 3 years (34 CFR 685.213(b)(7)). If you receive SSDI and work, ask Social Security how work affects your benefits.
Does TPD discharge affect cosigners?
On federal loans, there are no cosigners. If you have private loans with cosigners, TPD discharge doesn't apply to private loans (they must be discharged through bankruptcy or the lender's own disability policies). The cosigner on a private loan remains liable.
What if my disability improves after discharge?
Under the current rules, improvement in your condition or higher income does not reverse a TPD discharge. For a discharge based on SSA data or a medical certification, the loan is reinstated only if you receive a new Direct Loan or TEACH Grant within 3 years after the discharge (34 CFR 685.213(b)(7)).
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