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FAQ: Total and Permanent Disability

May 1, 2012

As a Direct Loan servicer, Nelnet’s Partner Solutions team receives questions from the school financial aid and borrower community on a regular basis.  In an effort to share the information and educate our school partners, we are posting to our blog some of the more relevant and well-timed questions that we receive.

Q: What is the process in the Direct Loan program for a loan discharge due to disability?  With FFELP, the student and a physician must complete a certification form, then send it to the guarantee agency.

A:   In the Direct Loan program, the borrower sends the Total and Permanent Disability application to the servicer(s) assigned to his or her loan(s).  The borrower must complete his or her section of the application located at http://disabilitydischarge.com/Pages/Users.aspx?id=35, and then have a physician complete the designated section of the form.  The physician must not use insurance codes or abbreviations in the physician’s section of the application.

The completed application, along with any supporting documentation, must be forwarded to the servicer for each Direct (or PUT) Loan.  If there is more than one servicer for the borrower’s loans, the borrower needs to send a copy of the application and supporting documentation to each servicer.  The servicer(s) will make a determination, and then forward it to the Department of Education (ED) for final approval.

More information about Total and Permanent Disability is available at http://www.disabilitydischarge.com/Pages/General.aspx.

 

Do you have any servicing-related questions?  Please let us know, so we can help you and others in the school community who may be wondering the same thing.

Alan Ishida - Regional Director, Nelnet Partner Solutions (AK, CO, HI, Guam, IA, WI, WV)

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