New Student Loan Administrative Forgiveness Rules

It is possible to get student loans discharged in bankruptcy, but the standards are quite high and expensive to litigate. The Obama administration has introduced new rules to help some people get their Federal student loans forgiven administratively.

Federal Student loans can be administratively discharged if you are “totally and permanently disabled”. With the new change in rules, qualifying for Social Security Disability can now be used to prove your total and permanent disability. Besides the SSDI finding, you can also use a 100% disability rating from the VA to show TPD.

For more info on the TPD Discharge, go to Total and Permanent Disability (TPD) Discharge

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