Anonymous
Anonymous asked in Education & ReferenceFinancial Aid · 10 months ago

Is it typical for student loans to be forgiven for mental illness ?

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  • 10 months ago
    Favorite Answer

    Short answer: No.

    Long answer: Federal student loans can be discharged if the borrower is determined to be totally and permanently disabled (TPD), which does include debilitating mental illness as well as physical. If your mental illness is so severe that a doctor determines that you are unable to secure gainful employment, you may be able to get your student loans discharged. It will count as income for tax purposes in the year that the TPD discharge is approved, and you have to continue to meet the disability criteria for three years after approval. 

    So, like, it *can* be done, but it's a tax bomb and unless you're already dependent on someone else to keep yourself fed and clothed and sheltered, you're going to have a very hard time doing those things for yourself even after your loan payments are no longer hanging over your head. This also only applies to Federal loans, not private loans (Sallie Mae, Discover, Wells Fargo, etc).

  • nancy
    Lv 7
    10 months ago

    It is not typical. However, if the loans are federal student loans and the mental illness results in a permanent disability, you can apply for a Permanent Disability discharge. This requires documentation from medical personnel that you are expected to be unable to perform any type of work for substantial gain. If your application is approved, in most cases the student is given a 3 year probationary period before the loans are actually discharged. If you earn more than a limited amount during that time, then the loans are reinstated. Also, if you return to school and take on more loans, then the original loans are reinstated. It's not an easy process and there is quite a lot of paperwork involved, but it is possible. You can full information about this discharge at https://studentaid.gov/

  • 10 months ago

    you need to ask financial aids this question

  • Anonymous
    10 months ago

    Mental illness ain't forgiving your loan

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  • Pearl
    Lv 7
    10 months ago

    you need to ask financial aids this question

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