The new Disabled Veteran Student Loan Forgiveness Program discharges the Federal Student Loan Debt of veterans who are OR have a 100 percent Total Disability Individual Unemployability (TDIU) status.
It’s officially called the Total and Permanent Disability (TPD) discharge program, and has been a huge success to date.
And guess what else veterans?
A little known fact is that if you’re a veteran with a 100 percent scheduler VA disability rating (neither P&T nor TDIU status apply to you), you’re also eligible for Disabled Veteran Student Loan Forgiveness!
Want the Video Tutorial to Learn “How to Get a 100% Permanent and Total (P&T) VA Disability Rating”
According to Trump’s executive order, only half (50%) or 25,000 of the approximately 50,000 totally and permanently disabled veterans who currently qualify for the discharge of their Federal student loan debt have received the benefits provided to them by the Higher Education Act of 1965, as amended.
But why did only 50% of eligible disabled veterans apply for VA student loan forgiveness?
Well, to be frank, the old process was confusing and frustrating, and prevented many disabled veterans from receiving the student loan debt relief for which they were entitled to by law.
The good news is that the new and improved disabled veteran student loan forgiveness program is super easy, intuitive to submit and get approved, and eligible disabled veterans can even apply online at the link below:
List of Top 3 Veteran Benefits of Disabled Veteran Student Loan Forgiveness
- #1 Benefit of the Federal Student Loan Forgiveness for Disabled Veterans: All veteran student loan debt wiped clean, potentially saving you hundreds of thousands of dollars overnight!
- #2 Benefit of the Disabled Veterans Student Loan Debt Discharge Program: Previous loan payments received on or after the effective date of the VA’s disability determination may be returned to the veteran.
- #3 Benefit of Veteran Student Loan Forgiveness: No federal tax on TPD discharges of a loan approved from Jan 1, 2018 through Dec 31, 2025.
Please note that loan amounts discharged due to TPD may still be considered as income for state tax purposes.
Ifyou receive a TPD discharge of a federal student loan, you may want to consultwith your state tax office or a tax professional before you file your state taxreturn.
What Qualifies for Veteran Student Loan Forgiveness?
The Total and Permanent Disability (TPD) discharge program, also known as the disabled veteran student loan forgiveness pogram, relieves eligible veterans from having to repay a William D. Ford Federal Direct Loan (Direct Loan) Program loan, Federal Family Education Loan (FFEL) Program loan, and/or Federal Perkins Loan (Perkins Loan) Program loan or complete a TEACH Grant service obligation on the basis of a total and permanent disability rating.
Eligibleveterans must complete a TPD discharge application and send it, along with anyrequired documentation of your eligibility for discharge, to Nelnet, the TPDdischarge servicer.
The TPD discharge application applies to ALL your federal student loans and/or TEACH Grant service obligations.
Disabled Veterans Student Loan Debt Statistics
According tothe Department of Veterans’ Affairs (VA), disabled veterans hold roughly $1 billionof student loan debt.
Granted, this only amounts to around .057% of the $1.73 trillion of student loan debt amount afflicting the country, but hey, it’s a start.
At VA Claims Insider, we’ve seen hundreds of fellow disabled veterans in our VA Claims Insider Elite Membership Program get their student loans forgiven entirely just by utilizing our proprietary resources and network of private independent medical doctors for disability exams and VA medical nexus letters.
Become an Insider
We’re Veterans helping Veterans Worldwide™, and since 2016 we’ve helped 10,000+ Veterans just like you INCREASE their VA disability rating!
And in case you’re wondering, the answer is “YES” — the TPD veteran student loan forgiveness program is 100% legit and an unbelievable benefit for disabled veterans who meet the eligibility criteria outlined on the TPD discharge official site.
VA Student Loan Forgiveness Eligibility and Application
If you’re a disabled veteran, you can qualify for disabled veteran student loan forgiveness by providing documentation from the VA that shows you have received a VA disability determination because you:
- (1) Have a service-connected disability rating that is 100 Percent Permanent and Total OR
- (2) Are totally disabled based on an individual unemployability rating OR
- (3) Have a service-connected disability rating that is 100% scheduler (it does NOT need to be P&T or TDIU).
You’ll want to download your official VA Benefit Summary Verification letter to prove your TPD discharge eligibility.
In case you’re wondering “HOW” to do that, here’s a quick tutorial in 5-simple-steps:
- Step #1: Login to your eBenefits account HERE.
- Step #2: On the left-hand side of the page, click the “Disabilities” link to see if any of your ratings have changed (the page also displays your current combined VA disability rating).
- Step #3: Next, go to the top of the page, and hover over “Manage” and then click “Documents and Records.”
- Step #4: Click “VA Letters”
- Step #5: Now click “Benefit Summary – Veteran Benefits” and scroll down to check your current rating, monthly payment amount, and if you’re permanently and totally disabled.
Disabledveterans can also qualify for a TPD discharge by having a physician certify onthe TPD discharge application that you are “unable to engage in any substantialgainful activity due to a physical or mental impairment” that:
- Can be expected to result in death;
- Has lasted for a continuous period of at least 60 months; or
- Can be expected to last for a continuous period of at least 60 months
Substantialgainful activity is a level of work performed for pay or profit that involvesdoing significant physical or mental activities, or a combination of both.
The physician who certifies your TPD discharge application MUST be a Doctor of Medicine (MD) or doctor of osteopathy/osteopathic medicine (DO) who is licensed to practice in the United States.
Veterans canlearn more about applying for a TPD discharge and obtaining a TPD dischargeapplication by visiting the official website: TPD discharge website and see the“Application Process” located HERE.
Veterans canalso let Nelnet know that you want to apply and request a TPD dischargeapplication by phone or email.
If you do,any required payments on your federal student loans will stop for 120 days togive you time to submit your application and any required supportingdocumentation.
You cancontact Nelnet by email at [emailprotected] and by phone at1-888-303-7818 Monday through Friday from 7am to 2am Eastern Time (ET), andSaturday from 8am to 7pm ET.
For additional ways to contact Nelnet, and to get more information about applying for a TPD discharge, visit the TPD Discharge Official Website HERE.
About The Author
Founder & CEO
Brian Reeseis a VA benefits expert, author of the #1 Amazon Bestseller You Deserve It: The Definitive Guide to Getting the Veteran Benefits You’ve Earned, andfounder of VA Claims Insider–“The Most Trusted Name in Education-Based Resources for Veterans.”
His frustration with the8-step VA disability claims processled him to create“VA Claims Insider,”which provides U.S. military veterans with tips, strategies, and lessons learned for successfully submitting or re-submitting a winning VA disability compensation claim.
Brian isalso the CEOofMilitary Disability Made Easy, which is the world’s largest free searchable database for all things related to DoD disability and VA disability claims and has served more than 4,600,000 military members and veterans since its founding in 2013.
His eBook, the“9 Secrets Strategies for Winning Your VA Disability Claim”has been downloaded more than 300,000 times in the past three years and is the #1 rated free VA disability claims guide for veterans.
He is aformer active duty Air Force officerwith extensive experience leading hundreds of individuals and multi-functional teams in challenging international environments, including a combat tour to Afghanistan in 2011 supporting Operation ENDURING FREEDOM.
Brian is a Distinguished Graduate of Management from theUnited States Air Force Academy, Colorado Springs, CO and he holds an MBA from Oklahoma State University’s Spears School of Business, Stillwater, OK, where he was a National Honor Scholar (Top 1% of Graduate School class).
If you're totally and permanently disabled, you may qualify for a discharge of your federal student loans and/or Teacher Education Assistance for College and Higher Education (TEACH) Grant service obligation.Can 90% VA disability get student loan forgiveness? ›
The short answer is yes: You can qualify for 90 percent disabled veteran student loan forgiveness with a 90% VA rating; however, it must be based on Total Disability Individual Unemployability (TDIU). If you have a 90% scheduler VA rating, you do not qualify for the disabled veteran student loan forgiveness program.Does student loan forgiveness apply to veterans? ›
U.S. military veterans that are totally and permanently disabled can qualify for discharge of 100% of their outstanding federal loans. Military veterans may be eligible for a streamlined Veterans Total and Permanent Disability Discharge (TPDD), making the process much simpler.Why would someone be a disabled veteran? ›
For example, the term “disabled veteran” means an individual who has served on active duty in the armed forces, was honorably discharged, and has a service-connected disability or a disability that was aggravated during active duty, or is receiving compensation, disability retirement benefits, or pension because of a ...What qualifies as disabled for student loan forgiveness? ›
You can have your student loans forgiven if you're totally and permanently disabled, meaning unable to earn an income because of a medical or mental impairment that has lasted for at least five years or is expected to result in death.How do I get the VA to pay off my student loans? ›
Qualifying for the program
The PSLF program forgives your remaining loan balance after you have made 120 qualifying monthly payments under a qualifying student loan repayment plan while working full-time for certain employers, like VA.
Veterans with a 100 percent disability rating receive the maximum monthly, tax-free compensation available. Depending on the circumstances, a Veteran with a 100 percent disability rating receives monthly compensation of $3,106.04.What is the VA rule on student loans? ›
VA Guidelines On Deferred Students Loans are much more lenient than any other government loan and/or conventional loan program. VA Loans is the only mortgage loan program that exempts student loans that are deferred from DTI Calculations. However, student loans need to be deferred for at least 12 months.Does PTSD qualify for student loan forgiveness? ›
Veterans with less than a 100% disability rating (e.g., 90%, 50%, etc.) can discharge their student loan debt if a doctor certifies that their mental or physical impairment — for example, posttraumatic stress disorder (PTSD) — prevents them from engaging in substantial gainful employment.Does VA disability count as income for student loans? ›
Yes, any disability compensation is counted on the FAFSA (Free Application for Federal Student Aid), considered untaxed income and benefits. When you receive VA disability benefits, this counts as part of your total income, including your adjusted gross income.
- Must be a federal student loan. ...
- Federal loans must have been disbursed on or before June 30, 2022. ...
- Individual borrowers must make less than $125,000 to qualify, and married couples who file taxes jointly, or heads of households, must make less than $250,000.
In addition to VA disability compensation, veterans rated at 80 percent may be eligible for additional benefits, including, but not limited to: Special Monthly Compensation. Veterans Benefits Banking Program. Travel allowances for VA Medical Center appointments.What is the 5 year rule for VA disability? ›
The VA disability 5 year rule allows the VA to ex-examine your VA disability rating within 5 years of your initial examination if your condition is expected to improve over time. However, the VA may still change your disability rating past the 5-year deadline if your condition has significantly improved.How much will 100 disabled veterans get paid in 2023? ›
|Combined VA Rating||2023 VA Compensation Rates (8.7% increase)||2022 VA Compensation Rates|
The Biden administration moved Thursday to grant 323,000 people who are severely disabled automatic federal student loan forgiveness to the tune of $5.8 billion, setting the stage for reforms to a process that is widely criticized as cumbersome and onerous.Can my VA disability be garnished for student loans? ›
The VA will not garnish a veteran's VA disability compensation for taxes, student loans, debts to creditors, or medical bills if the VA disability compensation is the veteran's sole source of income.How much is VA disability going up in 2023? ›
The adjustment for 2023 means a disabled veteran with a 10% VA rating can expect to see about $13.28 more each month, and a 100% disabled veteran with no dependents will receive $300 more per payment. Learn more online.What will the VA disability pay be in 2023? ›
|Dependent Status||70% Disability Rating||100% Disability Rating|
|Veteran (No Dependents)||$1,663.06||$3,621.95|
|Veteran with Spouse (No Dependents)||$1,804.06||$3,823.89|
|Veteran with Spouse and 1 Child||$1,907.06||$3,971.78|
|Veteran with 1 Child||$1,757.06||$3,757.00|
There is no set age of when your VA disability becomes permanent. The VA rater will determine “permanence” of a VA disability if it is reasonably certain, based upon medical evidence, that the level of impairment will continue for the rest of your life. Translation: Whether you're 35 or 75 years old it does not matter.What are the VA student loan payment guidelines for 2023? ›
VA Student Loan Guidelines 2023:
When no payment amount is reported or available, the lender will use 5% of the current balance divided by 12 to determine the payment. If the student is in an IBR program, and their payments under that program are fixed for at least 12 months, they can use that amount.
Technically there is no maximum VA loan amount. The VA loan limit is simply the most you, as a qualified Service Member or Veteran, are allowed to borrow with zero money down. Assuming you meet the other lending requirements set by the lender, you may qualify for a larger loan.What is the VA loan limit example? ›
Eligible Veterans, service members, and survivors with full entitlement no longer have limits on loans over $144,000. This means you won't have to pay a down payment, and we guarantee to your lender that if you default on a loan that's over $144,000, we'll pay them up to 25% of the loan amount.Who is not included in student loan forgiveness? ›
What student loans are not eligible for forgiveness? Private student loans, by definition, are private and are not eligible to be forgiven. These are loans the borrower owes to student loan providers and not the federal government.Who is no longer eligible for student loan forgiveness? ›
To qualify for any debt forgiveness under the Biden-Harris plan, individual borrowers must have earned less than $125,000 in 2020 or 2021, while married couples and heads of household have a $250,000 salary cap.Who is most affected by student loan forgiveness? ›
Student loans are not just a problem for young adults. The Department of Education estimates that more than one-third of the borrowers who will get relief are age 40 and up, including 5 percent who are senior citizens.Should I put VA disability on FAFSA? ›
You do not have to report VA education benefits on the FAFSA. However, you do need to report non-education VA benefits on the FAFSA. Non-education benefits include: disability, death pension, dependency indemnity compensation and/or VA Work-Study allowances.How much do veterans get for FAFSA? ›
Yes, student veterans can receive financial assistance from the Federal Pell Grant program if they meet certain criteria. The grant provides up to $6,895 for the 2022-2023 school year, though awards vary based on expected family contribution, cost of attendance, and enrollment status.Will I get approved for student loan forgiveness? ›
To qualify, single and married-filing-separately borrowers must have earned under $125,000 in Adjusted Gross Income in either 2020 or 2021; that income cap doubles for borrowers who are married and filed their taxes jointly.Can everyone apply for student loan forgiveness? ›
Who is eligible for student loan forgiveness? Only borrowers who hold federal student loans and meet certain income requirement can qualify for forgiveness. In 2020 or 2021, single-earners must have made less than $125,000, and for households, less than $250,000.Does one need to apply for student loan forgiveness? ›
Unless the Education Department already has your income information—for instance, if you recently applied for an income-driven repayment plan—you'll need to fill out an application to get your loans forgiven.
TWENTY YEAR RULE -The VA 20 year rule means if your rating has been in effect for 20 years or more, the VA cannot reduce it below the lowest rating it has held for the previous 20 years. Again, the only exception to this rule is if the VA can prove fraud.Is 70% PTSD a permanent VA disability? ›
The veteran's total disability due to PTSD is permanent with no likelihood of improvement. The 100 percent rating for PTSD is total, permanent, and static in nature.What happens to my VA disability when I turn 65? ›
Disability and TDIU benefits are not based on age or income. A veteran can be retired and still get other benefits, including TDIU benefits, permanent TDIU benefits, SMC benefits, and military retirement pay.How much a year is 100% VA disability? ›
As of December 1, 2022, a 100 percent VA disability for a single veteran with no dependents is $3,621.95 per month. The U.S. Department of Veterans Affairs (VA) adjusts this amount each year, typically raising it to account for increases in the cost of living.How long does 100% VA disability last? ›
If VA assigns you a 100% rating, it has the option of also designating you permanently and totally disabled. If you receive this designation, your benefits are safe for the rest of your life. The only exception is if VA later determines you obtained your benefits via fraud.What is the VA 50 year old rule? ›
The 55-Year Rule states that veterans receiving VA disability benefits for service-connected conditions are exempt from periodic future examinations once they turn 55.How hard is it to get a 100 VA disability rating? ›
As you might expect, it is difficult to obtain a 100% VA disability rating with just one service-connected disability. Most veterans who receive a 100% rating have two or more disabling conditions. Often, these conditions have a secondary service connection.Can a 100 disabled veteran get Social Security? ›
A Veterans Affairs compensation rating of 100% P&T doesn't guarantee that you'll receive Social Security disability benefits. To receive disability benefits from Social Security, a person must have a severe impairment expected to last at least one year or to result in death.Will VA disability increase in 2024? ›
Estimates are expected to range from 2 – 3 percent in 2024, much lower than the nearly 9 percent hike in 2023, and the 5.9 percent increase in 2022. Disability compensation, clothing allowances, and dependency and indemnity compensation (DIC) would rise when the COLA takes effect on Dec.Can the VA take away 100 permanent and total disability? ›
VA can reduce a total rating (i.e., 100% disability rating) only if there is material improvement in the veteran's condition.
TEN YEAR RULE -The VA 10 year rule means the VA cannot eliminate a rating that's been in place for 10 years or more. However, the rating can be reduced if medical evidence shows that the disability has improved.What is the 55 year old rule for VA disability? ›
Based on the results of the exam, your disability rating may increase, decrease, or stay the same. Once you turn 55, you are typically "protected" and will no longer have to attend an exam to prove that your condition has not changed unless there is reason to suspect fraud. This is sometimes called the 55-year rule.Does the wife of a 100 disabled veteran get benefits? ›
If your partner dies with a 100% disability, you may qualify for Dependency and Indemnity Compensation (DIC). This refers to tax-free monthly benefits sent to the surviving spouses of disabled veterans. Per VA, the base compensation you can receive in 2022 is $1,437.66 per month.Do I put my VA disability on FAFSA? ›
Do not include VA educational benefits on the income section of the FAFSA. Veteran's non education benefits (income): Enter the total amount of non education benefits you receive from VA. These will include Disability benefits, Dependency and Indemnity Compensation, Death Pension, VA Education Work Study, etc.Will going to college affect my VA disability benefits? ›
If the VA deems you able to work because you've been going to school, they may reduce your rating. If you can show them that your use of the GI Bill hasn't improved your disability and you still can't work, your rating will stay the same.