There are two good options for dealing with federal student loans: Income based repayment and disability discharges.
You do not need to be on disability to do either of these things.
You can even be working and still qualify for both of these programs!
🌻 Income Based Repayment
If you have government loans, you can sign up for student loans income-based repayment. I know a lot of people who have done this and it works great! It is easy to sign up for.
If you are not on disability you can still use this and it can work really great for any person who is low-income.
If you are on SSI, you will most likely owe $0 per month. If you are on SSDI, it depends how much income you have, or how much income your spouse has.
Warning: If you enroll in income-based repayment, in 20-25 years your debt will be forgiven and go away! Not as great as it sounds! This can cause tax problems. If you think you will still be alive in 20 years, learn more about how to escape tax problems.
🌻 Disability Discharges
If you have government loans, you can also look into applying for a disability discharge for your loans. You do not need to be approved for Social Security disability to qualify. You need a doctor who is willing to sign a form stating that you are permanently and totally disabled.
I know some people that have done this, and sometimes it works out great, but sometimes it doesn’t! Please be careful and research it first. What to watch out for:
- Not everyone qualifies. It is not enough to be on disability. You must show that you are “totally and permanently disabled.” Most people on Social Security disability do not have this designation. If this is your situation, you will need a doctor who will sign this form for you.
- May cause tax problems. This type of discharge can cause you tax problems.In some situations you can escape thees tax problems, and in some situations you can’t! Learn more about how to escape tax problems.
- Three years probation. Be careful if you think your condition may improve or you may go back to work in the next three years. There is a three-year probationary period.
🌻 Learn more
This information on this page is for federal student loans. If your loans are private, look here: