I have been on disability for 7 years now. Any one have advice on getting school loans discharged due to permanent disability? If the government had taken care of me when they should have I probably could have avoided being on dialysis and needing a kidney transplant. I have filled out the paperwork I was just wondering how long it takes them to discharge the debt, I know the government does a 3 year monitoring phase. I met all the obligations to have the debt discharged, just wondering about the timeline.
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Once you fill out the paperwork online, the process takes just a few months at most. Your Social security Award Letter is pretty much all they need to approve your discharge from federal loans. So, with that, it's a fast process. Your federal loans will be discharged on the day you are approved. Then, the 3-year review period starts. Be aware that IRS will treat your discharged loan amount as unearned income and you will be responsible from paying those taxes at the end of the 3 year period. This can be a huge amount. There are some exceptions for not being responsible from this huge tax bill and you should look into it to see if you qualify. In the meantime, congress might create a law to drop this tax liability, but, at the moment, the law says you pay taxes on discharged loans. -
So, do they charge you on just the principal owed, or the entire payment amount? This could make about a 3-fold difference.Comment
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