Perkins Loan - Death/Disability Discharge
In the event of a borrowers death, the loan can be canceled in full upon receipt of a certified death certificate. The certified death certificate should be mailed to the Student Loan Office at the address listed below.
TOTAL AND PERMANENT DISABILITY:
Total and permanent disability is the inability to engage in "substantial gainful activity" by reason of any medically determinable physical or mental impairment that can be expected to result in death, has lasted for a continuous period of not less than 60 months, or can be expected to last for a continuous period of not less than 60 months.
As of July 1, 2010, "subtantial gainful activity" is amended to be be a level of work performed for pay or profit that involves doing significant physical or mental activities, or both.
In order to apply for Total and Permanent Disability, the Department of Education Discharge Application form must be completed in it's entirety by the disabled borrower and the disabled borrowers attending physician and returned to the Student Loan Office at the address listed below within 90 days of the attending physician signing and dating the application.
Once received by the Student Loan office, the application will be reviewed and if everything is in order, the application will be forwarded to the Department of Education Disability Unit for final review. If the loan is accepted by the Department of Education Disability Unit, it will become the property of the Department of Education. At this point, the University will be out of the loop and all future correspondence will be handled between the borrower and the Department of Education. If the loan is not accepted by the Department of Education Disability Unit, the borrower will be contacted by the University in an effort to resolve the reason for the denial.
The government has created a very helpful website that answers many questions for the borrowers, their physicians and the lending institutions with regard to Total and Permanent Disability. Link to Government website
Remember, the completed total and permanent disability application must be returned to the University. Do not send it directly to the government.
If you are a veteran, you will be considered totally and permanently disabled for purposes of discharging your Perkins Loan if you provide documentation from the U.S. Department of Veterans Affairs showing that you have been determined to be unemployable due to a service-connected condition along with completing Sections 1 and 3 of the Discharge Application. The information must be returned directly to the Student Loan office at the address listed below.
Once received by the Student Loan Office, the request will be forwarded to the Veterans Disability Unit for final determination. Upon approval by the VA, the loan will be discharged.