disability discharge form
does anyone know what happens when a disability discharge form is filled out and finally accepted by my loan holder? I am told it takes up to sixty days for it to be answered, but its driving me crazy waiting. End of Aug will be 60 days and I still haven't heard anything back on what is happening. If its refused they said it will go into repayment status, but how do they think being disabled and collecting nothing, I am to pay on a 35K loan, which started out at 15K. They said to put it in deferment or forberance, but that does not last forever. Who are they to denie me if it happens to be denied and my doctor says the opposite? I am wishing that it just gets over with and gets away from me finally. I have a permanent back injury which prevents me to not work. If a loan is forgiven after that 26 year thing, whatever the balance is, I think gets given to you as income and then you now have to pay income tax on that total. geeze, by then it would be in the hundres of thousands and then you still owe the tax on it, wich would bring you back to the start again. Has anyone every though of that one? Sure its forgiven after that many years of nonpayment, but what about the IRS on the income? You will never win and if one can get a loan elsewhere, do it and avoind the federal gov. for their loans. The gov would give a loan to anyone in college because they know you are locked in with them.. The only way to get away from them is to pay it off in full, which i heard stories about that and folks still getting billed for a loan they paid off.... research that one and you will read horror stories on payoffs; you can die and thats it for the loan or you can become disabled and never be able to work to earn gainfull employment. I have been fighting with my disability for years now and have been jerked around by everyone. I finally got the paperwork accepted for review after having it returned numerous times for stupid stuff. I think they just couldn't find anymore reasons to send it back to me and had to acceptit. Its like filling out a car title...once you goof it up anywhere on the form it becomes null and void. When they email me, they only use initials who they are and are very carefull what they say to me for some reason. Usually they don't know what they hell they are talking about either and I go in circles. I will keep you all posted in the next few weeks on what happens next. I am not holding my breath with them either. If all goes well though it is to be discharged 1-14-07, b ut we will wait and see. I will not give up until I die I guess and I think thats what they want.
Conditional Discharge
If they make an initial determination of eligibility, your loan will go to DE. The discharge will initially be conditional for a 3-yr period of time. During the 3 years DE agents will monitor your IRS info and SSDI (if applicable). They may need you to sign forms authorizing them to do this, and provide them with documentation if requested.
After the 3-year term, assuming you are not earning more then the poverty line for a family of 2, have not taken out more student loans, and have had no miraculous recovery that allows you to earn wages from working, the discharge will be final.The amount discharged may be considered income.
If you fail to cooperate in allowing them to verify your income, if they discover you actually have been earning wages from working, etc you will resume repayment in accordance to the terms of your promissory note, and the loan(s) will be sent to ACS, DCS, or some other agency (where they will go depends on loan type and status before the disability claim) for servicing. You will not be charged for interest that accrued during the conditional discharge period, but you will start accruing interest again once you are disqualified from discharge.
disability discharge is just a circle
I was approved for SSDI. My student loans were in default and are now near $200,000 (mostly fees and interest). I started with only $38,000. Well, I applied for the disability discharge through the collection agency contracted to service my account. With my doctors help I was approved by the agency for the discharge, however, as soon as the Dept Ed. found out they switched collection agencies. This has happened three times. I cannot work, and I cannot pay. It is all a farce and I simply don't see what they are working toward. I am afraid they will take my SSDI and then where will I be? Even if they take 15%, I will not be able to live. My lawyer, a really good guy, suggested the hardship discharge because my husband has loans as well, but after reading here my only hope seems to be the lottery.
I truely think this country is messed up. I have warned my daughter to work her way through college and never, never take out a student loan. It is the worse loan you can get.