Education & Student Aid · Surprise rank #67
Totally and Permanently Disabled? Federal Student Loans Can Be Discharged
Federal Student Aid can discharge eligible federal student loans and TEACH Grant service obligations when the borrower meets the Total and Permanent Disability standard.
Who
Borrowers who qualify through Department of Veterans Affairs documentation, Social Security Administration status or certification from an authorized medical professional.
What to do
Start here: Review the TPD discharge criteria on StudentAid.gov and submit or confirm the qualifying VA, SSA or medical documentation.
Eligibility: The borrower must meet one of Federal Student Aid's current TPD documentation paths; merely receiving any disability benefit does not automatically qualify.
What you get
TPD discharge cancels eligible federal student-loan debt and TEACH Grant service obligations.
Benefit: Cancellation of the eligible federal student-loan balance and qualifying TEACH Grant service obligation.
Possible value: Up to the borrower's eligible outstanding federal balance.
Good to know
Important: The precise qualification path matters. Some borrowers are identified through agency data matches, while others must provide documentation.
Availability: Active
Why people miss it: Borrowers may assume disability only changes repayment options and not realize federal law provides a full discharge route.
Sources reviewed: Aug 10, 2026