How long is the monitoring period for students with discharged loans? (2024)

How long is the monitoring period for students with discharged loans?

If you are approved for TPD discharge based on Social Security Administration (SSA) documentation or a licensed medical professional's certification, you will be subject to a 3-year post-discharge monitoring period that begins on the date the discharge is approved.

How long does it take to discharge a student loan?

Depending on the IDR plan, the remaining balance on your loans may be forgiven after 20 or 25 years of repayment.

How long does disability discharge take?

How long does the total and permanent disability (TPD) discharge application process take? It typically takes less than 30 days to review the TPD discharge application. If your discharge application is incomplete or if a physician's response is held up, it can cause delays in the review process.

What does permanent discharge mean for student loans?

If you get a total and permanent disability (TPD) discharge, you don't have to repay your federal student loan(s) or complete your TEACH Grant service obligation. As of May 2023, around 492,000 borrowers have gotten loan forgiveness through TPD discharge.

Is the 3-year monitoring period eliminated?

While there is currently a 3-year income monitoring period in effect; the new rules going into effect on July 1, 2023, get rid of this requirement. The new rules also expand the SSA benefits that qualify one for TPD discharge. You can apply for TPD online here and find more information on the application process here.

How long is the post-discharge monitoring period?

Your loan holders will transfer your loans and/or TEACH Grant service obligation to us for discharge. You will then be subject to a 3-year post-discharge monitoring period that begins on the date the discharge is approved. There are requirements that you must meet during the post-discharge monitoring period.

Why is MOHELA taking so long?

Many factors impact processing times, including if your loans were with another servicer and require a transfer, if the form had any missing fields such as an employer's EIN, the number of PSLF forms we receive, and if ED is reviewing your employer's eligibility, among other factors.

What happens after the 3 year post discharge monitoring period?

If you take out any new federal loans within the three year post-discharge monitoring period, your loans will be reinstated. If you don't take out new loans, your discharge will officially go through at the end of those 3 years.

How long does MOHELA take to process PSLF?

If you faxed or mailed your PSLF form to MOHELA it may take up to 14 days for your mohela.com account to note that the form was received. Please allow at least 90 business days for your form to be processed.

What happens when student loans are discharged?

If you qualify for discharge of the full amount of your loan(s), you're no longer obligated to make loan payments. If you qualify for discharge of only a portion of your loan(s), you're still responsible for repaying the remaining balance.

Do you get a refund if your student loans are discharged?

For certain types of loan discharge, you may also receive a refund of some or all of the payments you made on the loan, and any adverse information related to your delinquency or default on the loan may be deleted from your credit record. If the loan was in default, the discharge may erase the default status.

Can I still apply for Sweet vs Cardona?

The Sweet settlement only impacts individuals who applied for borrower defense discharge on or before Nov. 15, 2022. If you didn't apply on or before Nov. 15, 2022, learn more about borrower defense and whether to apply.

Will discharged student loans increase my credit score?

As long as your loans were in good standing at the time they were discharged and your accounts are being reported properly to the credit reporting bureaus, you won't see a huge difference in your score. On the other hand, you could see your score drop if your account wasn't in good standing prior to the discharge.

What is the difference between loan forgiveness and discharge?

The terms “student loan forgiveness” and “student loan discharge” are used interchangeably for a good reason: They both mean you are no longer responsible for what is left of your student loan debt. More than 44 million Americans wish that were the case for them.

Is student loan discharge the same as forgiveness?

Put simply, Student loan forgiveness, cancellation, or discharge all mean that you are no longer required to repay some or all of your loan balance. While often used interchangeably, there are important distinctions between the terms and when they are applicable.

Can people on Social Security get student loan forgiveness?

Generally, if you are approved for, and currently receiving Social Security Disability Insurance (SSDI) benefits, then you should be automatically identified through an existing data match with the SSA and have any qualifying student debt automatically forgiven.

Are student loans forgiven with SSDI?

Borrowers who receive Social Security disability benefits can now qualify if they have a medical onset date at least five years before applying for student loan forgiveness through the TPD discharge program, regardless of their medical review cycles.

Can I get a student loan while on disability?

“People receiving long-term disability income from Social Security can still qualify for federal student loans,” said Kristen Moon, founder and CEO at Moon Prep, an educational consultancy based in the greater Atlanta area that guides parents and students through the U.S. college admissions process.

Do 100% disabled veterans get student loan forgiveness?

If you are totally and permanently disabled, you may qualify for a total and permanent disability (TPD) discharge of your federal student loans or TEACH Grant service obligation. If you receive a TPD discharge, you will no longer need to repay your loans or complete your TEACH Grant service obligation.

How do I know if my VA disability is permanent and total?

How to Know When Your Disability Rating is Permanent. Take a look at the decision letter VA sent you when granting benefits (i.e., your Rating Decision's Notice of Action letter). On some Rating Decisions, there is a Permanent and Total box that will be checked if your 100% disability is permanent.

Can 90% VA disability get student loan forgiveness?

The short answer is yes: You can qualify for 90 percent disabled veteran student loan forgiveness with a 90% VA rating; however, it must be based on Total Disability Individual Unemployability (TDIU). If you have a 90% scheduler VA rating, you do not qualify for the disabled veteran student loan forgiveness program.

Will MOHELA loans be forgiven?

Public Service Loan Forgiveness (PSLF)

PSLF Forgiveness: When you reach 120 or more qualifying payments for PSLF, your account is eligible to be placed into a forbearance and no payment will be due. To process forgiveness, a final review of your account will be conducted, which will take at least 90 business days.

Why is MOHELA getting sued?

MOHELA sued for allegedly mismanaging public service loan forgiveness - The Washington Post.

Why is MOHELA taking so long for PSLF?

But many PSLF borrowers haven't recently submitted employment documentation or done so at all. If you're one of these borrowers, just know that it might take longer for your PSLF form to process — especially if MOHELA has to certify all 120 months of your PSLF journey all at once.

Is Nelnet forgiving student loans?

Nelnet does not have its own student loan forgiveness program. Instead, it helps administer different loan forgiveness programs that the United States Department of Education offers to federal student loan borrowers, including the following types of forgiveness programs.