Question:
I have a profound hearing loss, and have not worked over a year because of it. I receive 60% of my former pay through a private disability policy. I am waiting for an "in person" hearing for SSDI (denied twice). I was required to apply for SSDI by the company that carries my private disability policy, I have a student loan balance of about $3500, which I have deferred.

The deferments are up next year, and I will not be able to make payments again if things are the same as they are now. Can I get out of this loan?, or what other options do I have? Some more information: It is a Federal student loan ..held by Sallie Mae. Out of work for about 15 months. Collecting private disability of $1350 a month. Apllied for SSDI (required to apply by private disability company). Denied twice, by will have an "in person hearing" before SS in the future, with my lawyer present.

Answer:
You could apply for a permanent disability forbearance, but as someone who has been through it, I can tell you you need a doctor you can trust with the paperwork. It is a federally secured debt, and these folks play hardball. If this is state money, I suggest you begin negotiation now. AES, of my state, rejected the first medical forbearance request from my internal medical practitioner, and threatened to clean me out, even garnish my SSDI. I sent a second form in through my rehabilitation hospital, and all the threats stopped, but I don't know, even as of this date, if I'm in the clear, and I have a four limb impairment, wheelchair dependent, with increased secondary symptoms due to age.

If you can give them a minimum payment per month, my advice would be to try. They don't kid around--but the permanent forbearance is difficult to receive if you applied for the loan and got it with the pre-existing condition in place. That's my problem. I always had the cp, I just cannot physically meet the SGA levels as SSA defines SGA, but the loan guaranteeors don't care about that. It also depends on who underwrote the loan - I'm uming you are talking about a Federal student loan program - and you disability status.

If you can tell us what type of loan it is someone might be able to provide an on line URL for the form to request the loan balance be waived due to permanent disability. And there's the rub, right now. How or if this works will depend a lot on your disability status with the SSA. It isn't mandatory, but an SSA ruling on your disability status in your favor will help a lot. IIRC you must have something that states your disabilty is permanent, and will prevent employment in the future. Length of time being out on disability goes a long way here as well. Out of work 6 months, no SSA ruling, only an MD's note, vs. Out of work 5 years, collecting SSI or SSDI during that period, at least on CDR by the SSA still ruling you are disabled - looked at in two very different lights when requesting the debt be waived. Eeewww not sure about this one.

Perkins federal loans can be discharged for 100% disability. But Sallie Mae loans ? PLUS loans - no - death discharge only but not for disability. It's been a while since I've helped anyone look this info up. All of the loan types aren't eligible for disability discharge. I know I had a huge student loans and my doctor just had to fill out a form from my bank (credit union) and I had the permanent deferment. I don't THINK I had SSD yet but I'm not sure. I had used up my temporary ones with great optimism.