Student Loan Forgiveness, how to get?
I am in the process of applying for SSDI. My doctor feels very
confident that I will get disability; I have heard so many stories I
am not sure, am not sure it will be on the first try. I may be offered
a job soon - before I hear about the disability decision. The job will
involve a move out of state, and it could be a good job for me at this
point. I desperately need $$$ now; even though I'm not sure how I'll
do working.
Questions:
1)If I get the job, take it, and get disability in 2-3 months, I will
be earning too much per month (over $700). At that point would I be
able to work for 9 mos. earning over $700 without penalty through the
TWP program?
2) I heard that if I am approved for permanent disability, my
federal/state student loans wll be forgiven. Is this permanent
forgivess even if I go back to work for the TWP, or even if I am able
to return to work later?
3) *When* in this process are the loans forgiven? Am I jeopardizing
the disability and/or student loan forgiveness by taking a job now or
doing the TWP?
Any info you have would be helpful. I very much appreciate it.
Ocean, forgiveness of student loans is not connected to the approval or
denial of your SSDI (if that is what I'm reading your question to ask.) A
separate decision or decisions are made regarding the student loans by
whoever carries or insures the loans. You'll need to get forms from them
and have your doctor fill them out. It's possible that your disabilites
might qualify you for SSDI and yet the student loans would be a denial (and
visa-versa).
It's a tougher situation as well to have student loans forgiven if you
suffered from the same disabling condition(s) when you took the loan(s) out.
It's not impossible. But you must now have new problems that are preventing
you from working or your previous condition(s) must have worsened a great
deal. If your previous conditions have worsened, they'll want to know
exactly how the picture has changed. The student loan people look at this
in the same way an insurance company would look a terminally ill patient who
is trying to apply for a huge life insurance policy. It would be a "no-go."
The disability clause that is built into many student loans are there to
protect people from catastrophic events, such as a severe problem that
arrises that would prevent them from working and repaying the loan. They
aren't in the business of giving out loans to people who will have little or
no ability to repay them.
For student loan forgiveness purposes they are going to want to pretty sure
that you will not be going back to work anytime soon. Besides explaining
your condition(s) and how they disable you, your doctor will also need to
certify that your condition(s) are permanent and stagnant (not likely to
improve to any degree.) Just as with SSDI, this process takes a bit more
than simply having your doctor certify you as "disabled."
If your loans are forgiven and you later return to some type of SGA, it
should not affect any loan(s) that have previously been wiped out. If your
condition(s) are such that you're thinking you could probably work again in
the future, the banks are likely to consider that your condition(s) are not
permanent.
Again, the student loans have nothing to do with the SSDI process. You can
apply for loan forgiveness at any time. If you take a job now, the banks
are sure to deny your request as may SSDI. As I stated above, if you think
you are in a position where it would be possible for you to work, anyone who
is reviewing you for disability benefits is likely to think the same thing.
SSDI will allow for a TWP but that is in regards to your benefits with them
(of which you currently have none.) You must already be receiving SSDI
benefits in order to attempt work under a TWP.