The only way I know that you can get rid of student loans is through the process of Permanent Disability Discharge, in which individuals get assistance in paying off the amount of their education loan. However, there is a strict guideline as to who can take advantage of this cancellation.
The cancellation can be applied to those who have been deemed permanently and totally disabled only if:
- The injury or illness prohibits the individual from earning a living due to the fact that it can persist indefinitely or result to death
- A doctor has certified the above scenario and believes his patient is 100% disabled
Conditional Discharge Period
In addition to this, the Department of Education requires concerned individuals to go through a conditional discharge period lasting up to three years. During this period, medical professionals will affirm that the patient truly is disabled.
The Department of Education will be checking with the IRS to see whether or not the patient has been earning income. Throughout the entirety of the conditional period, the patient needs to be checked regularly by the governing agency so they can affirm that the patient meets the conditions of a disabled individual. The student loan will be put on hold during this time, and the individual does not need to pay the interest or principal of the loan.
Passing the Conditional Period
At the end of the 3-year period, a decision will be made as to the eligibility of the individual for the cancellation of his student loan. For those who pass the conditional period, the student loan will be cancelled; otherwise the loan will need to be repaid.
Who Can Apply for Permanent Disability Discharge?
Not everyone can apply for Permanent Disability Discharge on their student loan. The Department of Education has a very strict definition of disability, in the sense that a person who is truly disabled is not able to work or earn money due to his major injury or illness. They even expect that the injury or illness will continue indefinitely or result to the death of the individual involved.
See student loans and STD’s have another thing in common. To get rid or treat either one you will be visiting the doctor a lot!