Student loan debt discharge for 100% TDIU veterans

Posted on: Tuesday, April 03, 2018
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Student loan debt discharge for 100% TDIU veterans

Question

Good evening, Jim;
I would like to know how to pay my college loan with veteran 90% disability compensation. If I get the Individual Unemployment Disability Compensation but I get a job so I will revert to 90% disability compensation again?

Jim's Reply

Your question isn't clear to me but I'll try...

It sounds as if you have a base rating of 90% disabled and you are rated as 100% TDIU. It also sounds as if you're struggling to repay student loans with your disability payments and you're wondering what could happen if you get a job to supplement your VA disability income. You're right to be concerned, TDIU beneficiaries aren't allowed to work at gainful employment. Gainful employment is defined as employment that will earn the beneficiary a wage above the federal poverty threshold for your region. 

If you are rated 90% and you are able to work, then you aren't eligible for the TDIU benefit. Veterans who are working or who are fully able to work aren't eligible for TDIU.

However, if you are a 100% TDIU disabled veteran it's likely that you're eligible to have the entire balance of your loan discharged. The regulations and info you'll need to know are here  https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation/disability-discharge  

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