My Loans were discharged due to disability. Will I Be Eligible For New Loans Or Teach Grants?

When you have your loans forgiven due to disability there are different provisions that must be followed.  The one is in regards to monitoring your activity in terms of income or disability status.  The other is your ability to receive new loans.

If the Department of Education grants a TPD (total permanent disability) discharge of your federal student loans or TEACH Grant service obligation, you will not be eligible to receive a new Direct Loan, Perkins Loan, or TEACH Grant in the future.  As with everything else there is an exception.  You can still receive a new loan under the following circumstance:

-If you obtain a certification from a physician that you are able to engage in substantial gainful activity


-You additionally must sign a statement  waiving the new loan or TEACH grant from being discharged in the future based on any injury or illness that presently exists.  If you develop a different disability or your current illness substantially deteriorates so that you are again totally and permanently disabled you can still qualify for further discharge but it cannot be based off your current illness.

In addition, if your discharge was granted based on documentation from the Social Security Administration or a physician’s certification and you request a new Direct Loan, Perkins Loan, or TEACH Grant during the 3‑year post‑discharge monitoring period, you must resume repayment on the previously discharged loans or acknowledge that you are once again subject to the terms of your TEACH Grant service obligation before you can receive the new loan or TEACH Grant.

However you will not be responsible for interest that accrued on the loans during the time your loans were discharged due to your permanent and total disability.