On December 20, 2024, the Department of Education announced that it is temporarily pausing the processing of Total and Permanent Disability (TPD) discharge applications. The TPD processing pause will last from December 20, 2024, to early March 2025.
The processing pause will give the Department time as it moves the management of the TPD program to studentaid.gov. Last May, the Department implemented a similar processing pause as it transitioned most of the servicing tasks under the PSLF program to studentaid.gov.
What is the Total and Permanent Disability (TPD) Discharge Program?
Total and Permanent Disability Discharge (TPD) is a loan discharge program that allows borrowers who are disabled and cannot work to have their federal student loans canceled. To cancel loans under the TPD program, the borrower must be totally and permanently disabled and unable to engage in any substantial gainful employment activity. You can find more information on the TPD discharge program and the eligibility requirements here.
Why is the Department pausing TPD discharge processing?
In the past, the Department of Education had a contract with Nelnet, a student loan servicing company, to handle all applications for TPD discharges.. However, the Department of Education is now taking steps to move certain loan servicing tasks to the new Unified Servicing and Data Solution (USDS) servicing environment. Applications for TPD and other special programs, such as Public Service Loan Forgiveness (PSLF), will now be handled internally by private contractors working with the Department of EducationEducation, called Business Process Operation (BPO) vendors. Because of this transition, Nelnet will no longer service or process discharges under the TPD program. Additionally, borrowers will be able to apply for TPD and track their TPD applications on their studentaid.gov accounts.
Can I apply for TPD discharge during the processing pause?
Yes, borrowers can continue to submit TPD applications during the pause, but some discharges may not be finalized until the transition process is completed in spring 2025. Borrowers submitting applications during the pause should keep a copy of their completed TPD applications and all supporting documents. They should also keep a copy of any notices or communications they receive from the Department regarding their TPD application.
Will I have to continue making payments on my loans if I submit a TPD application during the processing pause?
No, borrowers who submit a TPD application during the processing pause will be placed in forbearance until the processing pause ends in early March 2025.
How does the processing pause affect the processing of automatic TPD discharge for eligible veterans and borrowers receiving Social Security Disability benefits?
Under current regulations, the Department is allowed to automatically discharge the loans of disabled borrowers receivingreceiving disabilitydisability benefits under the VA or Social Security program. These borrowers do not have to apply for a TPD discharge. The Department of Education works with the VA and SSA to identify and contact borrowers who may be eligibleeligible for an automatic discharge of federal student loans. If a borrower who is contacted does not opt-out, their loans are then automatically discharged. At this moment, we do not expect the processing pause to impact automatic TPD discharge for veterans and eligible SSA borrowers. We will update this blog if that changes in the future.
What should borrowers expect after the processing pause is completed in March?
Even after the processing pause is over, borrowers should expect delays in getting updates about their TPD application status. The Department of Education and its contractors will likely have a backlog of applications that will take time to process.
What changes should borrowers expect once the TPD program transition process is completed?
Once the TPD program is moved to studentaid.gov in March, borrowers will be able to manage their TPD discharge application on studentaid.gov.
Borrowers will still be able to submit TPD applications by fax, email, or mail, but they will now have the option to submit their applications on studentaid.gov as well. According to the Department, borrowers will be able to perform the following tasks on studentaid.gov:
- Use form wizards to complete and submit their TPD application form;
- Track the status of their TPD applications;
- Digitally upload forms and information supporting their application for TPD discharge; Apply for reconsideration in the event their application is denied;
- Request forbearances while their TPD application is in process;
- Designate or revoke an authorized representative; and
- Get additional information about the TPD program.
