Total and Permanent Disability Discharge

• Website: https://studentaid.gov/manage-loans/forgiveness-cancellation/disability-discharge  this link will open in a new window

• Phone: 1-888-303-7818 (Toll Free)

• Fax: 540-212-2415

• Mail:

  U.S. Department of Education – TPD Servicing
  P.O. Box 300010
  Greenville, TX 75403
  

Tax Implications if Your Loans are Discharged

As a result of a change in tax law, loan balances that are discharged due to TPD are not considered income for federal tax purposes if you receive the discharge on or after January 1, 2018. If you qualify for a TPD discharge based on documentation from the VA, the date you are considered to have received the discharge for tax purposes is the date that we approve the discharge. If you qualify for a TPD discharge based on documentation from the Social Security Administration or a physician’s certification, the date you are considered to have received the discharge for tax purposes is the completion date of your three-year post- discharge monitoring period. If you receive a Form 1099-C, you should keep the form for your records, but you do not need to include it when filing your federal tax return. For additional information, visit irs.gov  this link will open in a new window .

The discharged loan amount may be considered income for state tax purposes. You may want to consult with your state tax office or a tax professional before you file your state tax return.