Can the completed application be faxed?
No. U.S. Department of Education (ED) regulations require an original borrower signature on the application. The signature should be in blue ink to verify it is an original.
What are the most common reasons disability discharge applications are denied?
Problems involving the section your physician is required to complete are the most likely reasons your application is being returned to your physician for more information.
When taking the application to your physician, bring the Instructions for completing Section 3 and emphasize that the form must be completed in its entirety, as specified on the instructions. Otherwise, the form will be returned to the physician.
My doctor certified the application and used medical abbreviations. Why was my form denied?
The Department of Education requires doctors to use laymen’s terms when certifying an application.
Medical abbreviations are not accepted.
I cannot do my job. Am I eligible to have my loans discharged?
The stipulation for loan discharge is not whether you can do your job but, rather, if you can work and earn money in any capacity.
Your doctor will make that determination based on the nature of your disability. If you are deemed able to earn income another way, you will not be eligible for a loan discharge.
If a disability impacts your ability to repay your loans, you may be eligible for deferment or forbearance.
My doctor indicated on the form that my diagnosis is the reason I am unable to work. Why was my application denied?
It is not sufficient for your doctor to simply state the diagnosis. Instead, your doctor must explain how the diagnosis stops you from earning money.
For example, having epilepsy is a diagnosis. Repeated headaches and seizures that are a danger to yourself and others is a reason you can’t earn money in any capacity.
Please note that this is just an example. Only your doctor can certify your condition as being unable to earn money in any capacity.
My doctor stated my condition began in January of 2005, yet my application was denied. Why?
Throughout the application, there are fields that require a date. All of these fields must be filled out in the MM/DD/YYYY (double-digit month, double-digit day, four digit year) format.
These dates are used to determine eligibility and are compared to your loan disbursement dates, so the exact dates are required.
Phrases such as “since birth,” “always,” or “a few years” are not acceptable and your form will be declined.
Why is the form so complicated and the rules for completion so strict?
The U.S. Department of Education dictates the disability discharge regulations (not your lender). Certain data points and formatting are required to ensure all relevant information is included for review so that an accurate decision can be made.
I am receiving Social Security (SSA-DISB) or Veterans Administration benefits. Am I eligible for a loan discharge due to permanent disability?
Receiving Social Security disability or VA benefits does not make you automatically eligible for a student loan discharge.
Your doctor must complete the application form in its entirety and provide documentation as to why you cannot earn money in any capacity.
My doctor changed my "illness begin date" and the date I became unable to work, and my form was denied. Why?
Any alterations to the application need to be initialed by your doctor. In addition, a separate letter from your doctor explaining must state exactly why the changes were made to the original. The most common reason for this letter concerns the "illness begin date"—it must always be a date before the date you became unable to work.
I am receiving ongoing medical treatment (such as dialysis or chemotherapy). Am I eligible for a loan discharge?
Your doctor must explain why such treatments prevent you from earning money in any capacity. Ongoing treatments do not make you automatically eligible: People receiving such treatments are sometimes able to return to work.
Who must certify my application form?
The form can only be certified by an MD or DO.
Physician’s assistants, RNs, LPNs, PhDs, interns, and/or physicians-in-training are not eligible to certify the form. A form certified by anyone who is not an MD or DO will be denied.
May my doctor provide additional information with my application form?
Yes. Please note that your doctor must still complete the form.
Any separate letters must be completed and signed by the same doctor who is certifying your application form.
Please inform your doctor there is no need to ever send medical records.
What is the relationship between the disbursement date of a Federal Family Educational Loan Program (FFELP) loan and the date a doctor certifies that a borrower is unable to work?
If the borrower received a FFELP loan after the date his or her primary physician certified that he or she was are unable to work, the borrower’s request for conditional discharge will be denied.
If the guarantor approves the conditional discharge of my FFELP loan, how will the information appear on my credit report?
If the conditional discharge of a FFELP loan is approved, it will appear as being transferred (to the guarantee agency) on a borrower’s credit report.
Can the permanent disability application be faxed to the doctor?
No. An original signature is required, and such a signature would not show up on a faxed form.
To avoid delays, please mail or deliver the application to your doctor for certification.
Can the doctor fax the completed permanent disability application to the lender?
No. An original signature is required, and such a signature would not show up on a faxed form.
To avoid delays, please mail the form to us yourself or have your doctor or agent do so. Our mailing address is:
P.O. Box 9500
Wilkes-Barre, PA 18773-9500
Is the interest that accrues during the 60-day administrative forbearance capitalized (added to the outstanding principal balance)?
Yes. Interest from the 60-day administrative forbearance is capitalized.