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re: At least half of students defaulted or failed to pay down debt within 7 years
Posted on 2/22/17 at 11:12 am to Patron Saint
Posted on 2/22/17 at 11:12 am to Patron Saint
Any federal loan program is eligible for disability discharge. This includes Subsidized, Unsubsidized, Perkins, PLUS, FFEL etc. This also includes any grad school, law, vet, or medical school loans, Unsub or PLUS .
The only loans not included would be a private loan through a bank or 3rd party.
The only loans not included would be a private loan through a bank or 3rd party.
Posted on 2/22/17 at 12:24 pm to whodatdude
I just looked at the federal government website regarding loans. As far as I can tell, total and permanent disability only allows forgiveness of FFEL, Perkins loans, Ford Direct loans, and TEACH grants. I don't see anything saying that Stafford loans are eligible. Either way, you would have to meet the criteria for total and permanent disability, so if your condition has a prognosis of you being disabled for just a year or you are only partially disabled, you wouldn't qualify. For example, if you are undergoing chemotherapy and you can only work part time due to fatigue, but you're not totally and permanently disabled, your loan wouldn't be forgiven. In that case, you're financially better off being dead unless you have good disability insurance.
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