Student Loan Forgiveness for Disability: How to Discharge Debt

Student Loan Forgiveness for Disability

The American Dream is built on the idea that every citizen should have the opportunity to succeed. This dream can be difficult for people with disabilities, who often struggle to find a career or maintain employment due to their physical and mental limitations. Fortunately, there are programs in place to help these individuals get back into the workforce by providing them loans forgiveness for disability so they can better manage their debt and improve their financial situation. Read more about how this process works below!

Student Loan Forgiveness for Disability

To qualify for disability loan forgiveness, the student must be receiving Social Security Disability Insurance, Supplemental Security Income, Medicaid, or Food Stamps. The student should also be legally blind, or unable to perform the activities of daily living without assistance. When applying for disability loan forgiveness, applicants need to be financially independent in order to qualify for loan forgiveness. This is done by making a contract with the loan lender, proving the person has income, and paying back their loan balance. Once this contract is complete, the student’s loans are forgiven! Student Loan Forgiveness for End-of-Course Tests If you have an outstanding student loan balance, it is possible to have it forgiven due to your high SAT score!

What is a Disability Discharge?

To qualify for a disability discharge, the person needs to have worked full time for the past 3 years. Any income the person may have been able to make previously has been converted into monthly Social Security Disability Insurance benefits (SSDI), as well as any subsequent employment income, for the past 3 years. You must be disabled in order to qualify for the disability discharge, and you must have been unable to work for at least 12 months before applying for the discharge. The Disabled Student Loan Forgiveness Program provides two types of disability discharge. The first, known as the Public Service Loan Forgiveness (PSLF), allows individuals to have their loan debt forgiven after they have made 120 qualifying payments.

How does it work?

Before you go too far into debt, it’s important to look at the student loan forgiveness options available to you. Luckily, there are programs in place to provide loan forgiveness to those who struggle with disabilities that prevents them from working. This means that those who qualify can either continue to pay their loans or choose to pay off their debt under a new plan to help them better manage their finances. While there are different programs for different disabilities, these loans are not eliminated by federal law, so it’s important to consult with an experienced student loan advisor to ensure you qualify. If you are interested in this loan forgiveness program, it’s a good idea to consult an attorney first to ensure your rights and obligations are fully protected.

When is Discharge Available?

There are several programs that allow individuals to receive loan forgiveness for disability. These programs are divided into two categories: Borrower Assistance and Direct Loan for Disability. Borrower Assistance Programs Disability-specific programs are called borrower assistance programs. Such programs are typically offered by nonprofit organizations or other private financial institutions. Some of the major providers of such programs include: Alliance for Rehabilitation Services (ARS) offers loan repayment for employees who suffer from an illness that prevents them from holding a job, as well as employees with a disability that requires regular medical care or other assistance with living independently.

What are the disadvantages?

There are a few reasons why people with disabilities may not be eligible for these programs. First, they might not have enough disability income to qualify for the loan forgiveness programs. But disability income and disability wealth can vary widely and depend on the severity of the disability, the person’s functional ability, and a variety of other factors. The amount of disability income one receives is generally tied to the disability severity. For instance, there is a maximum amount of disability income that would count toward the loan forgiveness program for persons with less severe disabilities. The maximum amount of disability income that would be counted toward the loan forgiveness program for more severe disabilities is more than 50 percent of the individual’s total income.

How to apply for a Discharge

To receive student loan forgiveness, you must have a qualifying disability that could prevent you from making a reasonable effort to enter the workforce. This could be a physical disability that requires a person to have reduced physical ability, or a mental disability that prevents them from achieving the same job goals they could have, had they not had a disability. To receive student loan forgiveness, you must have made 120 qualifying on-time payments toward federal student loans. You can find a full list of qualifying disabilities here.


As a society, we place value on each individual. It’s up to each individual to choose how to use their debt and help out the society they live in. Discharge your debt to a low-income, no-profit organization, or through a discharge loan to pay off your debt and improve your financial situation. Or, sell your debt and keep the money to start your business and become your own boss. Whatever route you choose to take, make sure you’re making the best decision for you!