This particular client contacted the Law Office of Simon Goldenberg PLLC for assistance with a federal student loan that was initially disbursed in 1979. Our Client had medical issues that impeded his ability to work and caused unemployment spanning a number of years. He was unable to repay the loan, fell into default, and was certified for a federal tax offset (which means his tax refunds could be taken to pay back his student loan). With interest and collection fees, the loan balance increased to over $28,500.
Since the Client was collecting Social Security Disability Insurance (SSDI) for many years, our first course of action was to seek a total and permanent disability discharge on his student loans. Our student loan lawyers obtained a Benefit Planning Query (BPQY) from the Social Security Administration (SSA) and submitted it in support of the discharge application. However, due to the particular details of the disability, the BPQY was insufficient to obtain approval for discharge, and as such, the application was denied.
We then proceeded to assist the client in applying for student loan discharge based on the certification of a physician, as opposed to relying on the disability information reported by the SSA on the BPQY. Upon our processing the new application, the Department of Education/Nelnet requested additional information from the physician, as the original application was deemed insufficient. If the physician had not responded to the request for additional information, the process would have stopped. However, the physician did respond with the additional information in a timely fashion, and the response was deemed sufficient to merit the discharge of the student loan. As such, the application for Total And Permanent Disability Discharge was approved.
So long as our client does not breach any of the terms of the discharge (ie. 3-year employment probationary period), he will never have to worry about this debt again. He will not be subject to federal tax refund offset, and he will not be subject to wage garnishment or legal action.
If you are seeking loan forgiveness on your student loans, call us for a free evaluation - 877-717-0098. Student loan forgiveness and discharge programs exist for certain disabled veterans, totally disabled individuals, governmental employees such as teachers and police officers, and more.