Total and Permanent Disability (TPD)

Perkins

• A Perkins Loan borrower who believes they should be eligible for cancellation due to a disability should complete a Total and Permanent Disability (TPD) Discharge Application through the Federal Student Aid Website.
• The Department of Education's Disability Discharge Unit will determine whether or not the application will be approved.
• If approved the loan is transferred from the SLSC to the Department of Education and the borrower is granted a conditional discharge for three years.
• At the end of the three years if the borrower still meets the criteria for discharge the loan is cancelled.
• If the borrower does not meet the criteria then they will go into a repayment status with the Department of Education.

Nursing

• Nursing Loan holders requesting cancellation for Total and Permanent Disability must submit a formal request to the Student Loan Service Center.
• Requests must include the following:
  • Nature and date of onset of the disability
  • Employment history prior to disability
  • Statement of financial support
  • Current medical examination and treatment regimen
  • Written consent to release information regarding the loan details and disability to the U.S. Department of Health and Human Services.
• The medical report must be sufficiently detailed to provide for a comprehensive review to determine the nature, duration and extent of the impairment and prognosis.
• Supporting documentation should include history of illness, medical examinations, inpatient and outpatient treatments, and current medications.
• The medical documentation must be accompanied by a signed and dated statement from the borrower's physician documenting permanent and total disability according to the following definition:
  • Permanent and total disability is defined as being unable to engage in gainful employment of any kind because of a medically determinable impairment which is expected to continue for a long and indefinite period of time or to result in death.
• Once the borrower has provided the required documentation the Student Loan Service Center will forward the information to the U.S. Department of Health and Human Services.
• The Secretary or designee will formally notify the SLSC of the decision.
  • If rejected the borrower retains responsibility for the loan repayment.
  • If approved the SLSC will take appropriate action to cancel the loan balance.

Other Loans

• Other loans serviced by the Student Loan Service Center may also have Total and Permanent Disability Cancellation provisions.
• Review your promissory note and/or contact the SLSC regarding these provisions.

The Student Loan Service Center (SLSC) provides loan servicing for Perkins, Nursing and other institutional loans issued and owned by the eleven state colleges and universities in the North Dakota University System.