What if my permanent disability is denied?

Like any other loan program you can get denied for Total and Permanent disability.

How you showed the Department of Education you were permanently disabled depends on how the denial process works.

If you showed the DOE that you are totally and permanently disabled based on the Veteran Affairs determination of unemployability due to a service-connected disability or service-connected disabilities, the following will occur:

-You will be contacted by mail by Nelnet Total Disability

-Your loan holders will be instructed to resume collection activity for your loans.

-Your denial letter will include the reason for denial in addition to information on how you can request reevaluation.  This is usually done by submitting additional documentation from the VA.

However if you showed the DOE that you are totally and permanently disabled based on Social Security Administration documentation or physician certification, the following will occur:

-You will still be contacted by mail by Nelnet Total Disability

-Your loan holders will still be instructed to resume collection activity for your loans.

-Your denial letter will include the reason for denial and what you can do if you have questions about the basis of the decision.  If you believe there is other information the DOE should consider it will list how to have that information reviewed.

If you do not qualify for a Total and Permanent Disability discharge, you will again be responsible for repaying your loans or completing your TEACH Grant service obligation.

Nelnet Disability will instruct your loan holders to resume collection activity on your loans; your loan holders will contact you to let you know the date you must resume making payments on your loans.

Your loans will return to the status they were in before you applied for the discharge, as though you had not applied for discharge; for example, if you were in default on your loans before you applied for a TPD discharge, the loans will be returned to default status.

Interest that accrued on your loans  while your application was being reviewed may be added to the principal through capitalization

If you have questions about the basis for the Department’s decision or believe there is other information that should be considered, please contact Nelnet Total Disability to discuss. You can call them seven days a week at 888.303.7818 from 8:00 a.m. to 8:00 p.m. (Eastern), or you can email them at DisabilityInformation@Nelnet.net.

If you provide Nelnet Disability with additional information that supports your eligibility for discharge within one year of the date of your denial letter, they will reevaluate your application for a disability discharge without requiring you to submit a new application.

However if you do not provide them with additional information that supports your eligibility for discharge within one year of the date of your denial letter, but you still want the Department of Education to reevaluate your eligibility for discharge, you must submit a new Total and Permanent Disability discharge application.

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