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Confused over whether there is still Income Monitoring of Total and Permanent Disability Applications to Discharge Federal Student Loan Debt?

Christie_1We’ve seen some confusion out there about whether those with disability discharges for federal student loans are required to provide income information going forward.  This is because the new rule hasn’t yet gone into effect.  But it will before the repayment pause ends so no worries.

The rule eliminates the three-year income monitoring requirement that too often caused borrowers to lose their discharges solely because they failed to respond to paperwork requests.

These Final rules will go into effect July 1, 2023.

You won’t see the revisions on or in servicer correspondence until after July 1, but the future income monitoring has been eliminated.

If you would like us to take a look over your loans, answer your questions, and help to ensure you are on the best path forward, please click the link below to get on our calendar.  Thank you!


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