I received Permanent Disability Discharge. Can my loan ever be reinstated?

I have gotten quite a few calls as of late from people who had their loans discharged via permanent disability only to have this later reversed and their loan being placed back into repayment.  Naturally they were frustrated, but what happens is that a TPD (total and permanent disability) discharge is subject to a 3-year post discharge monitoring.  This monitoring period begins on the date the discharge is approved.

However this is only if you were discharged based on SSA documentation or a physician’s certification.  If you were approved based on a VA determination of unemployability due to service-connected disability, you will not be subject to this monitoring.

What is monitored  is your annual earnings, receipt of new student loans, or changes in your SSA determination is application.  Here are the following things that will cause your loans to return during this monitoring period:

-annual employment earnings that exceed poverty guide line amount

-receive a new Direct Loan, Perkins, or TEACH Grant

-you receive a notice from the SSA stating that you are no longer totally and permanently disabled or that you no longer qualify for the 5 or 7 year review window.

If you break any of these provisions or receive notification questions your income or disability status, you must contact the Department of Education to report these actions.

If your obligation to repay is reinstated, you will be notified by US mail.  In this restatement notice it will list:

-reasons for reinstatement

-an explanation that the first payment due date will be no earlier than 60 days after the date of notification of reinstatement

-information on how you may contact the DOE if you have questions about this process or if you believe it was done incorrectly.

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