One way to eliminate student loan debt is to seek a Total and Permanent Disability Discharge of Federal Student Loans. If you are unable to work, this is likely a very good option for you. All collection efforts will stop during the application process except for garnishment and offsets.
You should not be receiving any collection calls during the process and should notify your attorney if this is happening as you may be entitled to $1,000 in statutory damages and in some cases if the calls are being made to your cell phone the damages may be accruing per call at $500-1,500 per call. Remember that you need to revoke consent to call your cell phone before you would be entitled to relief under the TCPA. Contact an attorney for further information if you have questions.
Some points to remember:
First, voluntary payments are no longer required during the review process. However, wage garnishment or Treasure offsets will still occur until the application is finalized.
Second, there are essentially two ways to be approved either be submitting your Social Security Administration Disability documentation or by a physician’s certification.
It may be best to have an attorney involved for the best results to make sure the application and any follow up is done correctly.
Once a TPD application is approved, the discharge of student loan debt may be subject to a three year review and monitoring period. The debt may be reinstated if any of the following occur:
Additionally, during the 3 years following the discharge of your loans, you must promptly notify or respond to the Department of Education if:
You may also receive a 1099-C for any forgiveness of debt that will be reported to the IRS and should be included as income. You may wish to consult with a tax advisor about how this may affect your personal taxes.