Do I qualify for Permanent Disability Discharge?

If you are permanently and totally disabled, you may qualify for forgiveness.  In order to qualify, you must meet the following criteria:

1. If you are a veteran, you can submit documentation for the US Department of Veteran affairs showing you are unemployable due to a disability caused by the service.

2. You are receiving Social Security Disability or Social Security Income.  In order to apply for this, you can submit a Social Security Administration notice of award for either of these criteria.

3. You are permanently disabled and will be for at least 60 months.  In order to qualify, your physician must certify  that you are unable to substantially gain or seek employment by reason of a medically determinable physical or mental impairment that can be expected to lead to death and last at least 60 months.

This discharge applies to all federally backed loans.  Remember though this discharge is considered taxable and if discharged you will received a 1099-c and must include it in as income the following tax year.

Similar to how FedLoan Servicing is the exclusive holder of Public Service Loan Forgiveness, Nelnet handles permanent disability discharge.  You can learn more by calling them at 888.303.7818  or going to