Disability or Death

Total and Permanent Disability

Total and permanent disability is the inability to work and earn money because of an injury or illness that is expected to continue indefinitely or to result in death.

You must submit a Loan Discharge Application: Total and Permanent Disability form. Your physician will certify your total and permanent disability in section 3 of the form. Your physician must certify that you are 100 percent disabled according to the definition of disability above. Your condition must not have existed when your loan was made unless your condition has substantially deteriorated so that you are now totally and permanently disabled.

If you are determined to be totally and permanently disabled, you will have your loan placed in a conditional discharge period for three years from the date you became totally and permanently disabled. During this period, you don't have to pay principal or interest. If you continue to meet the total-and-permanent disability requirements during and at the end of the three-year conditional period, your loan will be canceled. If you don't continue to meet the cancellation requirements, you must resume payment.

For more information on qualifying for this discharge, contact your loan holder.


Cancellation because of the borrower's death (or, in the case of PLUS Loans, the death of the student for whom the parent borrowed) is based on an original or certified copy of the death certificate being submitted to the holder of the loan.