Permanent Disability
If you are totally and permanently disabled, you may be eligible to have your Federal Stafford, Supplemental Loans for Students, PLUS, and Consolidation Loans discharged. A final discharge due to total and permanent disability cancels your obligation (and, if applicable, any endorser's obligation) to repay the balance of the loan(s). Please note: If your condition existed at the time your loan(s) was originated, the condition must have substantially worsened so that you are now totally and permanently disabled.
Total and permanent disability is defined as an injury or illness that is expected to continue indefinitely or result in death, and that keeps you from working or earning money. To be eligible for this discharge, you must provide certification of your disability from a Medical Doctor (MD) or Doctor of Osteopathy (DO) who is licensed to practice in the United States.
How do I apply for a Loan Discharge due to permanent disability?
You may download and print the Permanent Disability form (77 KB PDF). A completed sample form is provided for your reference. Our office requires an original application; therefore, you may not fax the application to our office. Completed forms and additional documentation may be sent to the address listed below:
American Education Services
Attn: DDB
P.O. Box 8183
Harrisburg, PA 17105-8183
Can a Spousal Consolidation loan be discharged?
A Spousal Consolidation consists of loans made up of student loan debt from both a husband and a wife. For the entire Consolidation Loan to be discharged, both parties must be eligible. If only one party is eligible, the portion of the loan originally taken out by the non-eligible spouse will remain payable.
What is the time-frame for sending in additional supporting documents that are necessary for the loan discharge?
All necessary and supporting documentation must be received with your completed application. If the necessary information is not included with your application, the application will be returned to you for completion and supporting documentation.
What steps should be followed to make sure the application is completed correctly?
Instructions are provided for both the borrower and doctor in order to complete the Permanent Disability application.