Department Offers Instructions for TPD Discharges for Veterans

The U.S. Department of Education announced the procedures for processing total and permanent disability loan discharges for veterans deemed by the federal secretary of veterans affairs to be unemployable due to a service-connected condition.

The new procedures, outlined in GEN-09-07, are based on statutory changes that establish a separate standard for determining TPD for education loan discharges for veterans.

The procedures are effective May 15, the date of the letter. For the Federal Family Education Loan Program and Direct Loan program, the instructions apply to requests that borrowers submitted on or after Aug. 14, 2008. For the Perkins loan program, the procedures apply to discharge requests received on or after July 1, 2008.

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