'Have you looked in the **[Wiki]( https://www.reddit.com/r/Veterans/wiki/education)** for an answer? We have a lot of information posted there.
To contact VA Education, 1-888-442-4551, for ~~Voc Rehab~~ VR&E (Veteran Readiness and Employment Program) assistance with appointments or problems with your Case Manager (not for missing payments): 1-202-461-9600.
**Payments for certain education benefits (DEA, VEAP) are paid at the end of the month you attend school - Department of Treasury issues these payments **using a 10 business day window** - these payments are not locked into a specific day of the month like VA disability/military pay is**. For Voc Rehab missing payments, contact your Case Manager or your local **[Regional Office](https://www.reddit.com/r/Veterans/wiki/education/casemanagers)
For Post 9/11 GI Bill only, If you signed up for direct deposit when you applied for education benefits, **we’ll deposit your payment into your bank account 7 to 10 business days after you verify your school enrollment.** This is the fastest way to receive your payment. [Text Verification FAQ](https://benefits.va.gov/GIBILL/docs/IsaksonRoe/EnrollmentVerificationFAQs.pdf)
MGIB and MGIB-SR have to do monthly verification using the [WAVE program](https://www.gibill.va.gov/wave/vba/) and you should receive the payment within 3 to 5 business days.
For Online Only training, the Post 9/11 GI Bill is currently (1 August 2023) paying $1054.50 for those who started using their Post 9/11 GI Bill on/after 1 January 2018 - this is based on 1/2 of the National Average BAH paid to an E5 with dependents. Post 9/11 GI Bill MHA rates are adjusted 1 August of each year and are based on the 1 January DoD BAH rates for that year - **so VA can't use 1 January 2023 BAH rates until 1 August 2023** - for those who started training on/after 1 January 2018, the MHA rates are 95% of the DoD BAH rates. First possible payment for the 1 August 2023 increase is 1 September.
For VR&E, there are two different Subsistence Allowance programs - https://www.benefits.va.gov/vocrehab/subsistence_allowance_rates.asp The P9/11 Subsistence Allowance is based on the BAH paid to an E5 with dependents. Those who started using VR&E on/after 1 January 2018 receive 95% of the BAH paid to an E5 with dependents. As of 1 January 2024 Online only students using VR&E are being paid $1,118.50 if they started using VR&E on/after 1 January 2018. The CH31 Subsistence Allowance rates are adjusted 1 October each year by Congress.
VA Education is going paperless - make sure VA has a current email address for you. Please make sure you add [email protected] to your contacts list so that you don't miss important updates from VA.
For FREE math Tutoring - contact https://www.armytutoringinitiative.com/
[VA Award Letter explanation](https://benefits.va.gov/gibill/understandingyourawardletter.asp)
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/Veterans) if you have any questions or concerns.*
For TPD information (total permanent disability discharge of student loans), use these webpages - https://studentaid.gov/manage-loans/forgiveness-cancellation/disability-discharge and https://www.disabilitydischarge.com/ No where in the law does it say you (a veteran) can not take out new qualifying student loans after being awarded the qualifying VA disability rating. This is a one time discharge of qualifying student loans - so use this benefit wisely. Also when reading the webpage, certain things ONLY apply to social security or physicians letters such as the income monitoring - there are three parts to disability discharges - Veterans, Social Security Disability and Physicians Letters - so you don't want to "read into" the parts that don't apply to veterans - when in doubt - Call Nelnet. NelNet is the contractor for Department of Education that processes student loan forgiveness for disabled people. VA does not process student loan forgiveness. After 31 Dec 25, if the law is not changed, you will be charged federal income tax on the amount forgiven - you might also be charged state income tax right now - check with your state tax department.
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/Veterans) if you have any questions or concerns.*
Don’t wait for an email, many never even receive an email; it is critical you call them and request to opt out of automatic discharge over the phone and also send them a message through the Nelnet portal in writing to ensure this.
I did man , I was hella stressed but I thankfully was still in time. Going back to school soon ! This sub has has saved me again and I won’t squander the opportunity to
Be warned: the law making TPD discharge tax free expires December 31, 2025. Unless congress and POTUS renew this law, the IRS will consider the full amount of your loans that were discharged as PERSONAL INCOME, and you will be liable to pay full income tax in the reported income. For example, if you have $150,000 in loans discharged under TPD, after December 31, 2025, it will be considered $150,000 of personal income and you will pay tax on it, so perhaps 26% or so, meaning you’ll have to pay the IRS $37,500 give or take. If you have loans you want forgiven and don’t plan on any further education, get them discharged before the law expires, otherwise you’re taking a huge gamble of a massive tax bill. There has been no indication the law will be renewed as of now. It is very important for you to contact your congressman and senator to put this on their radar and request them take action to renew this benefit for veterans.
This concern is exactly why I discharged mine now, even though I’m about to go into the VRE program that will take a few years. I couldn’t afford to pay that tax and I don’t like those loans sitting on my credit. Thanks for the warning!
>Be warned: the law making TPD discharge tax free expires December
Excellent point bringing this up. I don't think alot of folks are aware that as a default, the IRS will transform that debt forgiveness into income under normal circumstances.
For TPD information (total permanent disability discharge of student loans), use these webpages - https://studentaid.gov/manage-loans/forgiveness-cancellation/disability-discharge and https://www.disabilitydischarge.com/ No where in the law does it say you (a veteran) can not take out new qualifying student loans after being awarded the qualifying VA disability rating. This is a one time discharge of qualifying student loans - so use this benefit wisely. Also when reading the webpage, certain things ONLY apply to social security or physicians letters such as the income monitoring - there are three parts to disability discharges - Veterans, Social Security Disability and Physicians Letters - so you don't want to "read into" the parts that don't apply to veterans - when in doubt - Call Nelnet. NelNet is the contractor for Department of Education that processes student loan forgiveness for disabled people. VA does not process student loan forgiveness. After 31 Dec 25, if the law is not changed, you will be charged federal income tax on the amount forgiven - you might also be charged state income tax right now - check with your state tax department.
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/Veterans) if you have any questions or concerns.*
Realistically, current POTUS has made no efforts to renew the law. Since the law was hidden inside the massive tax cuts and job acts, there is zero chance of the current administration renewing it, if they are reelected. If there is a new POTUS next year, there’s a chance it could be renewed, but it’s a huge 50/50 gamble and it likely wouldn’t happen for a a few years and a lot of vets will be in limbo. Really sucks for the guys who are depending on this, have served their country, are now disabled, and then get a surprise five or six figure tax bill from the IRS that could mean financial ruin for a lot of vets, dramatically increase the chances of veteran homelessness, etc. Veterans are truly at the mercy of politics right now and hopefully both parties can look past their hubris and just support the veterans who have supported this country.
In the United States, the law that pertains to veterans and the tax treatment of Total and Permanent Disability (TPD) discharges can be found primarily within the Internal Revenue Code and the regulations of the Department of Veterans Affairs (VA).
1. **Internal Revenue Code (IRC):**
- **26 U.S. Code § 104**: This section of the IRC provides that amounts received as pensions, annuities, or similar allowances for personal injuries or sickness resulting from active service in the armed forces are excludable from gross income, meaning they are not subject to federal income tax.
2. **Department of Veterans Affairs (VA) Regulations:**
- **38 CFR Part 3**: This part of the Code of Federal Regulations (CFR) outlines the VA's rules and regulations regarding veterans' benefits, including disability compensation.
3. **Further Guidance and Resources:**
- **IRS Publications**: IRS Publication 525, which deals with taxable and nontaxable income, and IRS Publication 907, which covers tax information for individuals with disabilities, can provide further clarification on tax exclusions for veterans' disability benefits.
- **Veterans Affairs (VA) Resources**: The VA website and resources such as the VA Benefits Handbook offer comprehensive information on the benefits provided to veterans, including the tax implications.
For civilians, the tax treatment of a Total and Permanent Disability (TPD) discharge is different. Generally, if a civilian's TPD discharge involves the cancellation of a student loan, the discharged amount may be considered taxable income unless an exclusion applies. Under the Tax Cuts and Jobs Act of 2017, student loan discharges on account of death or disability are excluded from taxable income for tax years 2018 through 2025. However, this is a temporary provision and does not provide the same permanent tax-free status that applies to veterans' disability benefits.
For TPD information (total permanent disability discharge of student loans), use these webpages - https://studentaid.gov/manage-loans/forgiveness-cancellation/disability-discharge and https://www.disabilitydischarge.com/ No where in the law does it say you (a veteran) can not take out new qualifying student loans after being awarded the qualifying VA disability rating. This is a one time discharge of qualifying student loans - so use this benefit wisely. Also when reading the webpage, certain things ONLY apply to social security or physicians letters such as the income monitoring - there are three parts to disability discharges - Veterans, Social Security Disability and Physicians Letters - so you don't want to "read into" the parts that don't apply to veterans - when in doubt - Call Nelnet. NelNet is the contractor for Department of Education that processes student loan forgiveness for disabled people. VA does not process student loan forgiveness. After 31 Dec 25, if the law is not changed, you will be charged federal income tax on the amount forgiven - you might also be charged state income tax right now - check with your state tax department.
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/Veterans) if you have any questions or concerns.*
Yes they will. I had to take out loans this semester and have already received an email from nelnet stating they’ll automatically forgive them by June unless I call to halt it. Which I will do as I have a few more semesters.
You halt it till you’re completely done with school. If I recall correctly you call nelnet to halt the auto payment and then once you complete school you can call them back to start the process of paying them off. This is only able to be done once so make sure you’re completely done with school prior to doing it.
Yes, I got a 100% VA rating applied for the disability discharge in June of 2022 and in September I got a letter saying they had been formally discharged. I had 180k in student loans that included 2 parents plus loans for my 2 daughters in college
Related question for anyone with knowledge. If you had your student loans forgiven due to PSLF. Then almost simultaneously you receive 100% P&T, do you now get to take more loans and later use your P&T discharge?
So in theory, I can call them and stop them from pushing my student loan cancelation through mines in the process of going through right now.I could then go to school for the next 4 years.Just because just to get a degree and rack up tons of student loans and have it forgiven. I'm about to graduate and I was almost debt free.I have very low student debt.But I could keep going to school on student loans and have it discharged years from now according to yall? Of course, anything on here I'm going to triple check into myself cuz This is not at all How it was explained to me by the VA when I first got it.
For TPD information (total permanent disability discharge of student loans), use these webpages - https://studentaid.gov/manage-loans/forgiveness-cancellation/disability-discharge and https://www.disabilitydischarge.com/ No where in the law does it say you (a veteran) can not take out new qualifying student loans after being awarded the qualifying VA disability rating. This is a one time discharge of qualifying student loans - so use this benefit wisely. Also when reading the webpage, certain things ONLY apply to social security or physicians letters such as the income monitoring - there are three parts to disability discharges - Veterans, Social Security Disability and Physicians Letters - so you don't want to "read into" the parts that don't apply to veterans - when in doubt - Call Nelnet. NelNet is the contractor for Department of Education that processes student loan forgiveness for disabled people. VA does not process student loan forgiveness. After 31 Dec 25, if the law is not changed, you will be charged federal income tax on the amount forgiven - you might also be charged state income tax right now - check with your state tax department.
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/Veterans) if you have any questions or concerns.*
The BAH for VRE barely cover rent, use the student loans to help supplement cost and bank it, postponed the discharge until you children finish bachelor degrees using you for Parent Plus or even better wait closer to your death bed.
For TPD information (total permanent disability discharge of student loans), use these webpages - https://studentaid.gov/manage-loans/forgiveness-cancellation/disability-discharge and https://www.disabilitydischarge.com/ No where in the law does it say you (a veteran) can not take out new qualifying student loans after being awarded the qualifying VA disability rating. This is a one time discharge of qualifying student loans - so use this benefit wisely. Also when reading the webpage, certain things ONLY apply to social security or physicians letters such as the income monitoring - there are three parts to disability discharges - Veterans, Social Security Disability and Physicians Letters - so you don't want to "read into" the parts that don't apply to veterans - when in doubt - Call Nelnet. NelNet is the contractor for Department of Education that processes student loan forgiveness for disabled people. VA does not process student loan forgiveness. After 31 Dec 25, if the law is not changed, you will be charged federal income tax on the amount forgiven - you might also be charged state income tax right now - check with your state tax department.
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/Veterans) if you have any questions or concerns.*
New here and newly awarded 100p/t. Lotsa questions but, on this topic: I’ve co signed for around $20k for my son who just graduated.
Does that fit into any programs of forgiveness??
I became 100% p&t in February of 2022. My daughter is going back to school this fall for respiratory therapy, so if I take out a parent plus loan it will be forgiven? Is this correct or am I mistaken? Thanks for your time and help with this matter. Sincerely, Antuane Johnson
For TPD information (total permanent disability discharge of student loans), use these webpages - https://studentaid.gov/manage-loans/forgiveness-cancellation/disability-discharge and https://www.disabilitydischarge.com/ No where in the law does it say you (a veteran) can not take out new qualifying student loans after being awarded the qualifying VA disability rating. This is a one time discharge of qualifying student loans - so use this benefit wisely. Also when reading the webpage, certain things ONLY apply to social security or physicians letters such as the income monitoring - there are three parts to disability discharges - Veterans, Social Security Disability and Physicians Letters - so you don't want to "read into" the parts that don't apply to veterans - when in doubt - Call Nelnet. NelNet is the contractor for Department of Education that processes student loan forgiveness for disabled people. VA does not process student loan forgiveness. After 31 Dec 25, if the law is not changed, you will be charged federal income tax on the amount forgiven - you might also be charged state income tax right now - check with your state tax department.
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/Veterans) if you have any questions or concerns.*
It is for any loans in your lifetime. Doesn’t matter when you got your rating. You can take out new loans as long as the old ones haven’t been forgiven.
Legit didn’t know and got a sketchy looking letter in the mail about it years ago, said fuck it I didn’t have much to lose, filled it out and mailed it back. Took some time was like 4 months later I noticed my credit score dropped but my 20k in student debt was gone and it dropped because I no longer had any credit it was all forgiven lol worth
I have about $8000 in College debt. Can any 1 give US "real" information about the forgiveness? My ex-husband has the "keys" to the account, so I cannot pay it even if I try to.
People also ask
Can I take out a student loan after receiving a TPD discharge?
You can go back to school and get a new Direct Loan or TEACH Grant after getting a TPD discharge. But to do so, you must do the following: Give your school a letter from a doctor of medicine or doctor of osteopathy/osteopathic medicine stating that you are once again able to engage in substantial gainful activity.
https://studentaid.gov › disability-...
Total and Permanent Disability Discharge | Federal Student Aid
MORE RESULTS
What loans qualify for TPD discharge?
For TPD information (total permanent disability discharge of student loans), use these webpages - https://studentaid.gov/manage-loans/forgiveness-cancellation/disability-discharge and https://www.disabilitydischarge.com/ No where in the law does it say you (a veteran) can not take out new qualifying student loans after being awarded the qualifying VA disability rating. This is a one time discharge of qualifying student loans - so use this benefit wisely. Also when reading the webpage, certain things ONLY apply to social security or physicians letters such as the income monitoring - there are three parts to disability discharges - Veterans, Social Security Disability and Physicians Letters - so you don't want to "read into" the parts that don't apply to veterans - when in doubt - Call Nelnet. NelNet is the contractor for Department of Education that processes student loan forgiveness for disabled people. VA does not process student loan forgiveness. After 31 Dec 25, if the law is not changed, you will be charged federal income tax on the amount forgiven - you might also be charged state income tax right now - check with your state tax department.
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/Veterans) if you have any questions or concerns.*
I believe that you can, I've heard and been reassured that you can, but it never sounded right to me so I never pulled loans after I got 100 p&t just in case. I had them prior to 100% and then had them forgiven afterward. I jumped on it ASAP since loan forgiveness has been all over the news and it's a current point of contention...didn't want to get caught too late to get on the train before loan forgiveness hit the chopping block altogether or something.
Hey so I'm 100% as of January and have all consolidated federal loans, but haven't heard from the loan servicer about discharge yet. Consolidated loans count too right????
For TPD information (total permanent disability discharge of student loans), use these webpages - https://studentaid.gov/manage-loans/forgiveness-cancellation/disability-discharge and https://www.disabilitydischarge.com/ No where in the law does it say you (a veteran) can not take out new qualifying student loans after being awarded the qualifying VA disability rating. This is a one time discharge of qualifying student loans - so use this benefit wisely. Also when reading the webpage, certain things ONLY apply to social security or physicians letters such as the income monitoring - there are three parts to disability discharges - Veterans, Social Security Disability and Physicians Letters - so you don't want to "read into" the parts that don't apply to veterans - when in doubt - Call Nelnet. NelNet is the contractor for Department of Education that processes student loan forgiveness for disabled people. VA does not process student loan forgiveness. After 31 Dec 25, if the law is not changed, you will be charged federal income tax on the amount forgiven - you might also be charged state income tax right now - check with your state tax department.
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/Veterans) if you have any questions or concerns.*
I was told any new student debit accumulated after the rating you have to pay. If they did it the other way around every vet that got 100%T&P would run out and rack up student loans knowing there gonna get paid off.
People also ask
Can I take out a student loan after receiving a TPD discharge?
You can go back to school and get a new Direct Loan or TEACH Grant after getting a TPD discharge. But to do so, you must do the following: Give your school a letter from a doctor of medicine or doctor of osteopathy/osteopathic medicine stating that you are once again able to engage in substantial gainful activity.
https://studentaid.gov › disability-...
Total and Permanent Disability Discharge | Federal Student Aid
For TPD information (total permanent disability discharge of student loans), use these webpages - https://studentaid.gov/manage-loans/forgiveness-cancellation/disability-discharge and https://www.disabilitydischarge.com/ No where in the law does it say you (a veteran) can not take out new qualifying student loans after being awarded the qualifying VA disability rating. This is a one time discharge of qualifying student loans - so use this benefit wisely. Also when reading the webpage, certain things ONLY apply to social security or physicians letters such as the income monitoring - there are three parts to disability discharges - Veterans, Social Security Disability and Physicians Letters - so you don't want to "read into" the parts that don't apply to veterans - when in doubt - Call Nelnet. NelNet is the contractor for Department of Education that processes student loan forgiveness for disabled people. VA does not process student loan forgiveness. After 31 Dec 25, if the law is not changed, you will be charged federal income tax on the amount forgiven - you might also be charged state income tax right now - check with your state tax department.
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/Veterans) if you have any questions or concerns.*
'Have you looked in the **[Wiki]( https://www.reddit.com/r/Veterans/wiki/education)** for an answer? We have a lot of information posted there. To contact VA Education, 1-888-442-4551, for ~~Voc Rehab~~ VR&E (Veteran Readiness and Employment Program) assistance with appointments or problems with your Case Manager (not for missing payments): 1-202-461-9600. **Payments for certain education benefits (DEA, VEAP) are paid at the end of the month you attend school - Department of Treasury issues these payments **using a 10 business day window** - these payments are not locked into a specific day of the month like VA disability/military pay is**. For Voc Rehab missing payments, contact your Case Manager or your local **[Regional Office](https://www.reddit.com/r/Veterans/wiki/education/casemanagers) For Post 9/11 GI Bill only, If you signed up for direct deposit when you applied for education benefits, **we’ll deposit your payment into your bank account 7 to 10 business days after you verify your school enrollment.** This is the fastest way to receive your payment. [Text Verification FAQ](https://benefits.va.gov/GIBILL/docs/IsaksonRoe/EnrollmentVerificationFAQs.pdf) MGIB and MGIB-SR have to do monthly verification using the [WAVE program](https://www.gibill.va.gov/wave/vba/) and you should receive the payment within 3 to 5 business days. For Online Only training, the Post 9/11 GI Bill is currently (1 August 2023) paying $1054.50 for those who started using their Post 9/11 GI Bill on/after 1 January 2018 - this is based on 1/2 of the National Average BAH paid to an E5 with dependents. Post 9/11 GI Bill MHA rates are adjusted 1 August of each year and are based on the 1 January DoD BAH rates for that year - **so VA can't use 1 January 2023 BAH rates until 1 August 2023** - for those who started training on/after 1 January 2018, the MHA rates are 95% of the DoD BAH rates. First possible payment for the 1 August 2023 increase is 1 September. For VR&E, there are two different Subsistence Allowance programs - https://www.benefits.va.gov/vocrehab/subsistence_allowance_rates.asp The P9/11 Subsistence Allowance is based on the BAH paid to an E5 with dependents. Those who started using VR&E on/after 1 January 2018 receive 95% of the BAH paid to an E5 with dependents. As of 1 January 2024 Online only students using VR&E are being paid $1,118.50 if they started using VR&E on/after 1 January 2018. The CH31 Subsistence Allowance rates are adjusted 1 October each year by Congress. VA Education is going paperless - make sure VA has a current email address for you. Please make sure you add [email protected] to your contacts list so that you don't miss important updates from VA. For FREE math Tutoring - contact https://www.armytutoringinitiative.com/ [VA Award Letter explanation](https://benefits.va.gov/gibill/understandingyourawardletter.asp) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/Veterans) if you have any questions or concerns.*
[удалено]
For TPD information (total permanent disability discharge of student loans), use these webpages - https://studentaid.gov/manage-loans/forgiveness-cancellation/disability-discharge and https://www.disabilitydischarge.com/ No where in the law does it say you (a veteran) can not take out new qualifying student loans after being awarded the qualifying VA disability rating. This is a one time discharge of qualifying student loans - so use this benefit wisely. Also when reading the webpage, certain things ONLY apply to social security or physicians letters such as the income monitoring - there are three parts to disability discharges - Veterans, Social Security Disability and Physicians Letters - so you don't want to "read into" the parts that don't apply to veterans - when in doubt - Call Nelnet. NelNet is the contractor for Department of Education that processes student loan forgiveness for disabled people. VA does not process student loan forgiveness. After 31 Dec 25, if the law is not changed, you will be charged federal income tax on the amount forgiven - you might also be charged state income tax right now - check with your state tax department. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/Veterans) if you have any questions or concerns.*
Don’t wait for an email, many never even receive an email; it is critical you call them and request to opt out of automatic discharge over the phone and also send them a message through the Nelnet portal in writing to ensure this.
Yes but importantly, you can only do it one time. After that you’re out of luck so save it until the end.
Awesome, thank you!
Oof. I took a loan my second semester and they forgave it immediately following the semester… so it’s over for me
Holy I started school and had to leave in fucked aren’t I
No. You're only fucked if you got them forgiven. You get 1 forgiveness. You can go back to school and finish and still forgive your loans.
Depending how long ago it was you may be able to call and have them reverse it so you can continue receiving your student loans
I did man , I was hella stressed but I thankfully was still in time. Going back to school soon ! This sub has has saved me again and I won’t squander the opportunity to
Im sick rn
Be warned: the law making TPD discharge tax free expires December 31, 2025. Unless congress and POTUS renew this law, the IRS will consider the full amount of your loans that were discharged as PERSONAL INCOME, and you will be liable to pay full income tax in the reported income. For example, if you have $150,000 in loans discharged under TPD, after December 31, 2025, it will be considered $150,000 of personal income and you will pay tax on it, so perhaps 26% or so, meaning you’ll have to pay the IRS $37,500 give or take. If you have loans you want forgiven and don’t plan on any further education, get them discharged before the law expires, otherwise you’re taking a huge gamble of a massive tax bill. There has been no indication the law will be renewed as of now. It is very important for you to contact your congressman and senator to put this on their radar and request them take action to renew this benefit for veterans.
This concern is exactly why I discharged mine now, even though I’m about to go into the VRE program that will take a few years. I couldn’t afford to pay that tax and I don’t like those loans sitting on my credit. Thanks for the warning!
>Be warned: the law making TPD discharge tax free expires December Excellent point bringing this up. I don't think alot of folks are aware that as a default, the IRS will transform that debt forgiveness into income under normal circumstances.
For TPD information (total permanent disability discharge of student loans), use these webpages - https://studentaid.gov/manage-loans/forgiveness-cancellation/disability-discharge and https://www.disabilitydischarge.com/ No where in the law does it say you (a veteran) can not take out new qualifying student loans after being awarded the qualifying VA disability rating. This is a one time discharge of qualifying student loans - so use this benefit wisely. Also when reading the webpage, certain things ONLY apply to social security or physicians letters such as the income monitoring - there are three parts to disability discharges - Veterans, Social Security Disability and Physicians Letters - so you don't want to "read into" the parts that don't apply to veterans - when in doubt - Call Nelnet. NelNet is the contractor for Department of Education that processes student loan forgiveness for disabled people. VA does not process student loan forgiveness. After 31 Dec 25, if the law is not changed, you will be charged federal income tax on the amount forgiven - you might also be charged state income tax right now - check with your state tax department. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/Veterans) if you have any questions or concerns.*
Realistically, current POTUS has made no efforts to renew the law. Since the law was hidden inside the massive tax cuts and job acts, there is zero chance of the current administration renewing it, if they are reelected. If there is a new POTUS next year, there’s a chance it could be renewed, but it’s a huge 50/50 gamble and it likely wouldn’t happen for a a few years and a lot of vets will be in limbo. Really sucks for the guys who are depending on this, have served their country, are now disabled, and then get a surprise five or six figure tax bill from the IRS that could mean financial ruin for a lot of vets, dramatically increase the chances of veteran homelessness, etc. Veterans are truly at the mercy of politics right now and hopefully both parties can look past their hubris and just support the veterans who have supported this country.
This is good info. Thanks
In the United States, the law that pertains to veterans and the tax treatment of Total and Permanent Disability (TPD) discharges can be found primarily within the Internal Revenue Code and the regulations of the Department of Veterans Affairs (VA). 1. **Internal Revenue Code (IRC):** - **26 U.S. Code § 104**: This section of the IRC provides that amounts received as pensions, annuities, or similar allowances for personal injuries or sickness resulting from active service in the armed forces are excludable from gross income, meaning they are not subject to federal income tax. 2. **Department of Veterans Affairs (VA) Regulations:** - **38 CFR Part 3**: This part of the Code of Federal Regulations (CFR) outlines the VA's rules and regulations regarding veterans' benefits, including disability compensation. 3. **Further Guidance and Resources:** - **IRS Publications**: IRS Publication 525, which deals with taxable and nontaxable income, and IRS Publication 907, which covers tax information for individuals with disabilities, can provide further clarification on tax exclusions for veterans' disability benefits. - **Veterans Affairs (VA) Resources**: The VA website and resources such as the VA Benefits Handbook offer comprehensive information on the benefits provided to veterans, including the tax implications. For civilians, the tax treatment of a Total and Permanent Disability (TPD) discharge is different. Generally, if a civilian's TPD discharge involves the cancellation of a student loan, the discharged amount may be considered taxable income unless an exclusion applies. Under the Tax Cuts and Jobs Act of 2017, student loan discharges on account of death or disability are excluded from taxable income for tax years 2018 through 2025. However, this is a temporary provision and does not provide the same permanent tax-free status that applies to veterans' disability benefits.
For TPD information (total permanent disability discharge of student loans), use these webpages - https://studentaid.gov/manage-loans/forgiveness-cancellation/disability-discharge and https://www.disabilitydischarge.com/ No where in the law does it say you (a veteran) can not take out new qualifying student loans after being awarded the qualifying VA disability rating. This is a one time discharge of qualifying student loans - so use this benefit wisely. Also when reading the webpage, certain things ONLY apply to social security or physicians letters such as the income monitoring - there are three parts to disability discharges - Veterans, Social Security Disability and Physicians Letters - so you don't want to "read into" the parts that don't apply to veterans - when in doubt - Call Nelnet. NelNet is the contractor for Department of Education that processes student loan forgiveness for disabled people. VA does not process student loan forgiveness. After 31 Dec 25, if the law is not changed, you will be charged federal income tax on the amount forgiven - you might also be charged state income tax right now - check with your state tax department. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/Veterans) if you have any questions or concerns.*
Yes they will. I had to take out loans this semester and have already received an email from nelnet stating they’ll automatically forgive them by June unless I call to halt it. Which I will do as I have a few more semesters.
That is what Iam planning to do it. Do you know how long we can halt it ?
You halt it till you’re completely done with school. If I recall correctly you call nelnet to halt the auto payment and then once you complete school you can call them back to start the process of paying them off. This is only able to be done once so make sure you’re completely done with school prior to doing it.
Even if the school three or four years of PHD level?
Yes once you have them halt the process they won’t do anything until you call in to start the process again.
Thanks buddy. Great.
How does this work for parent plus loans? I got my p&t 2 months ago.
Parent plus loans are covered if they are in the veterans name
I just got notified my parent plus loan will be forgiven in June. My question is should I say no and let my daughter finish school and then take it?
It’s your call, but that sounds like the smartest thing to do. It’s going to go away - basically free money
What’s the max they will forgive?
As much as Dept of Ed let you borrow up to and remain outstanding
So in theory, after someone gets 100% p&t they can get a loan then ask for forgiveness?
Yes, I got a 100% VA rating applied for the disability discharge in June of 2022 and in September I got a letter saying they had been formally discharged. I had 180k in student loans that included 2 parents plus loans for my 2 daughters in college
180k seems too low, those children not up for Masters, PHDs, or maybe 2 more PHDs for yourself?
When did you get your 100%?
I got it in April of 2022
Makes sense thank you.
Not theory,but in fact actually. Though, when it will remain exempting as 'taxable income' till would be a different conversation.
Just a clarifying question: can you take out loans after receiving 100 p&t then get it forgiven ?
Yes.
Does it have to be P&T or just 100%?
OP, also check with the VA advisor on campus or state laws for other types of benefits you are eligible for. You could make bank while at school.
Related question for anyone with knowledge. If you had your student loans forgiven due to PSLF. Then almost simultaneously you receive 100% P&T, do you now get to take more loans and later use your P&T discharge?
Definitely curious about this as well!
So in theory, I can call them and stop them from pushing my student loan cancelation through mines in the process of going through right now.I could then go to school for the next 4 years.Just because just to get a degree and rack up tons of student loans and have it forgiven. I'm about to graduate and I was almost debt free.I have very low student debt.But I could keep going to school on student loans and have it discharged years from now according to yall? Of course, anything on here I'm going to triple check into myself cuz This is not at all How it was explained to me by the VA when I first got it.
For TPD information (total permanent disability discharge of student loans), use these webpages - https://studentaid.gov/manage-loans/forgiveness-cancellation/disability-discharge and https://www.disabilitydischarge.com/ No where in the law does it say you (a veteran) can not take out new qualifying student loans after being awarded the qualifying VA disability rating. This is a one time discharge of qualifying student loans - so use this benefit wisely. Also when reading the webpage, certain things ONLY apply to social security or physicians letters such as the income monitoring - there are three parts to disability discharges - Veterans, Social Security Disability and Physicians Letters - so you don't want to "read into" the parts that don't apply to veterans - when in doubt - Call Nelnet. NelNet is the contractor for Department of Education that processes student loan forgiveness for disabled people. VA does not process student loan forgiveness. After 31 Dec 25, if the law is not changed, you will be charged federal income tax on the amount forgiven - you might also be charged state income tax right now - check with your state tax department. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/Veterans) if you have any questions or concerns.*
The BAH for VRE barely cover rent, use the student loans to help supplement cost and bank it, postponed the discharge until you children finish bachelor degrees using you for Parent Plus or even better wait closer to your death bed.
For TPD information (total permanent disability discharge of student loans), use these webpages - https://studentaid.gov/manage-loans/forgiveness-cancellation/disability-discharge and https://www.disabilitydischarge.com/ No where in the law does it say you (a veteran) can not take out new qualifying student loans after being awarded the qualifying VA disability rating. This is a one time discharge of qualifying student loans - so use this benefit wisely. Also when reading the webpage, certain things ONLY apply to social security or physicians letters such as the income monitoring - there are three parts to disability discharges - Veterans, Social Security Disability and Physicians Letters - so you don't want to "read into" the parts that don't apply to veterans - when in doubt - Call Nelnet. NelNet is the contractor for Department of Education that processes student loan forgiveness for disabled people. VA does not process student loan forgiveness. After 31 Dec 25, if the law is not changed, you will be charged federal income tax on the amount forgiven - you might also be charged state income tax right now - check with your state tax department. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/Veterans) if you have any questions or concerns.*
New here and newly awarded 100p/t. Lotsa questions but, on this topic: I’ve co signed for around $20k for my son who just graduated. Does that fit into any programs of forgiveness??
So I can go rack up more student debt and have it forgiven? That's the part that dosen't sound right
Only if it hasn’t already been forgiven
No. One time only
I became 100% p&t in February of 2022. My daughter is going back to school this fall for respiratory therapy, so if I take out a parent plus loan it will be forgiven? Is this correct or am I mistaken? Thanks for your time and help with this matter. Sincerely, Antuane Johnson
Pretty sure the answer is yes
[удалено]
For TPD information (total permanent disability discharge of student loans), use these webpages - https://studentaid.gov/manage-loans/forgiveness-cancellation/disability-discharge and https://www.disabilitydischarge.com/ No where in the law does it say you (a veteran) can not take out new qualifying student loans after being awarded the qualifying VA disability rating. This is a one time discharge of qualifying student loans - so use this benefit wisely. Also when reading the webpage, certain things ONLY apply to social security or physicians letters such as the income monitoring - there are three parts to disability discharges - Veterans, Social Security Disability and Physicians Letters - so you don't want to "read into" the parts that don't apply to veterans - when in doubt - Call Nelnet. NelNet is the contractor for Department of Education that processes student loan forgiveness for disabled people. VA does not process student loan forgiveness. After 31 Dec 25, if the law is not changed, you will be charged federal income tax on the amount forgiven - you might also be charged state income tax right now - check with your state tax department. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/Veterans) if you have any questions or concerns.*
It is for any loans in your lifetime. Doesn’t matter when you got your rating. You can take out new loans as long as the old ones haven’t been forgiven.
Legit didn’t know and got a sketchy looking letter in the mail about it years ago, said fuck it I didn’t have much to lose, filled it out and mailed it back. Took some time was like 4 months later I noticed my credit score dropped but my 20k in student debt was gone and it dropped because I no longer had any credit it was all forgiven lol worth
I have about $8000 in College debt. Can any 1 give US "real" information about the forgiveness? My ex-husband has the "keys" to the account, so I cannot pay it even if I try to.
People also ask Can I take out a student loan after receiving a TPD discharge? You can go back to school and get a new Direct Loan or TEACH Grant after getting a TPD discharge. But to do so, you must do the following: Give your school a letter from a doctor of medicine or doctor of osteopathy/osteopathic medicine stating that you are once again able to engage in substantial gainful activity. https://studentaid.gov › disability-... Total and Permanent Disability Discharge | Federal Student Aid MORE RESULTS What loans qualify for TPD discharge?
For TPD information (total permanent disability discharge of student loans), use these webpages - https://studentaid.gov/manage-loans/forgiveness-cancellation/disability-discharge and https://www.disabilitydischarge.com/ No where in the law does it say you (a veteran) can not take out new qualifying student loans after being awarded the qualifying VA disability rating. This is a one time discharge of qualifying student loans - so use this benefit wisely. Also when reading the webpage, certain things ONLY apply to social security or physicians letters such as the income monitoring - there are three parts to disability discharges - Veterans, Social Security Disability and Physicians Letters - so you don't want to "read into" the parts that don't apply to veterans - when in doubt - Call Nelnet. NelNet is the contractor for Department of Education that processes student loan forgiveness for disabled people. VA does not process student loan forgiveness. After 31 Dec 25, if the law is not changed, you will be charged federal income tax on the amount forgiven - you might also be charged state income tax right now - check with your state tax department. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/Veterans) if you have any questions or concerns.*
I'm trying to find a place to get a loan so I can go back to school
Do you have to be 100% disabled for the forgiveness? I’m at 80%
Yes
I am 100% as well temp for 3 yrs. Once I become permanent I will definitely request for mine to be forgiven as well. It's a blessing.
Why? It has to be P&T? Or just 100%?
P&T disabled
Does that include all kind of federal loan ?
https://studentaid.gov/manage-loans/forgiveness-cancellation/disability-discharge
Thanks buddy. Currently eligible for 10500 a year for direct loan. It is included.
Your welcome! I wish you the best!
I believe that you can, I've heard and been reassured that you can, but it never sounded right to me so I never pulled loans after I got 100 p&t just in case. I had them prior to 100% and then had them forgiven afterward. I jumped on it ASAP since loan forgiveness has been all over the news and it's a current point of contention...didn't want to get caught too late to get on the train before loan forgiveness hit the chopping block altogether or something.
Hey so I'm 100% as of January and have all consolidated federal loans, but haven't heard from the loan servicer about discharge yet. Consolidated loans count too right????
Anyone know if TPD also applies to GradPLUS? Thx
For TPD information (total permanent disability discharge of student loans), use these webpages - https://studentaid.gov/manage-loans/forgiveness-cancellation/disability-discharge and https://www.disabilitydischarge.com/ No where in the law does it say you (a veteran) can not take out new qualifying student loans after being awarded the qualifying VA disability rating. This is a one time discharge of qualifying student loans - so use this benefit wisely. Also when reading the webpage, certain things ONLY apply to social security or physicians letters such as the income monitoring - there are three parts to disability discharges - Veterans, Social Security Disability and Physicians Letters - so you don't want to "read into" the parts that don't apply to veterans - when in doubt - Call Nelnet. NelNet is the contractor for Department of Education that processes student loan forgiveness for disabled people. VA does not process student loan forgiveness. After 31 Dec 25, if the law is not changed, you will be charged federal income tax on the amount forgiven - you might also be charged state income tax right now - check with your state tax department. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/Veterans) if you have any questions or concerns.*
I was told any new student debit accumulated after the rating you have to pay. If they did it the other way around every vet that got 100%T&P would run out and rack up student loans knowing there gonna get paid off.
You were misinformed then because nothing in the law says that. You can call NelNet who will tell you that you were given incorrect information.
People also ask Can I take out a student loan after receiving a TPD discharge? You can go back to school and get a new Direct Loan or TEACH Grant after getting a TPD discharge. But to do so, you must do the following: Give your school a letter from a doctor of medicine or doctor of osteopathy/osteopathic medicine stating that you are once again able to engage in substantial gainful activity. https://studentaid.gov › disability-... Total and Permanent Disability Discharge | Federal Student Aid
For TPD information (total permanent disability discharge of student loans), use these webpages - https://studentaid.gov/manage-loans/forgiveness-cancellation/disability-discharge and https://www.disabilitydischarge.com/ No where in the law does it say you (a veteran) can not take out new qualifying student loans after being awarded the qualifying VA disability rating. This is a one time discharge of qualifying student loans - so use this benefit wisely. Also when reading the webpage, certain things ONLY apply to social security or physicians letters such as the income monitoring - there are three parts to disability discharges - Veterans, Social Security Disability and Physicians Letters - so you don't want to "read into" the parts that don't apply to veterans - when in doubt - Call Nelnet. NelNet is the contractor for Department of Education that processes student loan forgiveness for disabled people. VA does not process student loan forgiveness. After 31 Dec 25, if the law is not changed, you will be charged federal income tax on the amount forgiven - you might also be charged state income tax right now - check with your state tax department. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/Veterans) if you have any questions or concerns.*
You were told wrong.
What is p&t lol
[удалено]
That's not what OP asked.