CHRONIC TONIC posts on Thursdays at 9 p.m. EST. It is a place to share stories, advice, and information and to connect with others with chronic health conditions and those who care for them. Our diarists will report on research, alternative treatments, clinical trials, and health insurance issues through personal stories. You are invited to share in comments (and note if you'd like to be a future diarist).
Tonight's diary by: MsGrin
I was oblivious to this when it transpired last summer, but it is fact that ONE other group than the Banksters was bailed out in 2010. Those of us who have been unable to work due to disability for five years may be able to have their student loans discharged:
Disability Discharge
If a borrower is unable to engage in any substantial gainful activity by reason of a medically determinable physical or mental impairment that can be expected to result in death, has lasted for a continuous period of not less than 60 months, or can be expected to last for a continuous period of not less than 60 months, the borrower may apply for a total and permanent disability (TPD) discharge of his or her Federal Family Education Loans (FFEL), Perkins Loans, William D. Ford Federal Direct Loans (Direct Loans), or Teacher Education Assistance for College and Higher Education (TEACH) Grant service obligation. This page describes how to apply for a disability discharge and what the process is like.
NOTE: Certain veterans may be considered totally and permanently disabled based on a different standard, and may apply for discharge through a separate process. Please see Veterans Disability Disharge for more information.
Conditions for receiving the discharge include the borrower not earning more than the poverty guidelines for a family of two and not returning to school for a period of three years which begins on the date the physician signs the application (application pdf).
So, you meet the time and work criteria, you fill out your portion of the application and have your physician do the same, and you send the application off to your lender. How long does this take?
From the FAQ's:
•How long will the discharge process take?
The Department’s review of your application can take anywhere from 30 days to a few months, depending on the completeness of the application and the response time of your physician, if it is necessary for us to contact your physician for additional information.
Until recently, it said anywhere from 'a few days...'
Don't you believe 'em. First, they have to receive the application after it has been reviewed by the lender and the guarantor. That's supposed to happen within a couple months - in my case, it took four months for it to be received by the contractor working for the Department of Education to handle the Total an Permanent Discharge (TPD) applications. What customer service actually tells you is that this process is likely to take a year and a half - I kid you not.
So far, the steps I have been aware of are:
Pending Verification
Pre-Medical
Medical Review
Certification by DOE
and Discharge by the contractor
My experience with customer service is that when they do not have answers about what is transpiring and why it is taking so long, they make up sh*t to encourage a person to get off the phone. When I have gone to verify the information I've been given, as often as not, they have provided erroneous information.
Ten months after my application was submitted and four months after the contractor received the loan from the lender and guarantor, I finally got to the Medical Review stage. When I phoned to find out how long this step would take, I was told to expect it to be 120 days for this step. Somehow, however, when I learned that they had given me information which was different than what was verified by my lender and guarantor, and then I called the DOE Ombudsman's office, somehow, that whole Medical Review which was supposed to take 120 days got accomplished in 3 hours. Or so they tell me. The Ombudsman's office has not been able to verify that this is correct.
Don't worry, there are still two steps left for me to navigate! Lots more fun in store, I'm sure!
Happy hunting to those of you who may also qualify.