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New balance

Started by willievermakeit, May 10, 2020, 06:10:35 pm

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willievermakeit

From what I gather if you are accepted for the student loan forgiveness (disability) you must wait three years until the debt is gone.. if I decide to return to school and get accepted, what will be my new loan balance? Will it be a fresh start or will it be the remaining of my balance before I was accepted for loan forgiveness?

TheCollegeInvestor

May 11, 2020, 09:29:32 am #1 Last Edit: May 11, 2020, 01:42:41 pm by TheCollegeInvestor
You can go back to school, you just can't do any of the following (or have it happen):
- Get a grant or new student loan
- Your annual employment income cannot exceed the poverty guideline amount for a family of two in your state, regardless of your family size.
- SSA determines you are no longer totally and permanently disabled, or that your next disability review no longer meets the five-to-seven-year review period.

If any of those happen, your loans will be reactivated. It will be the balance from before you applied, excluding interest.

See our full guide here: Student Loan Disability Discharge.

willievermakeit

May 11, 2020, 12:14:38 pm #2 Last Edit: May 11, 2020, 01:42:48 pm by TheCollegeInvestor
Quote from: TheCollegeInvestor on May 11, 2020, 09:29:32 amYou can go back to school, you just can't do any of the following (or have it happen):
- Get a grant or new student loan
- Your annual employment income cannot exceed the poverty guideline amount for a family of two in your state, regardless of your family size.
- SSA determines you are no longer totally and permanently disabled, or that your next disability review no longer meets the five-to-seven-year review period.

If any of those happen, your loans will be reactivated. It will be the balance from before you applied, excluding interest.

See our full guide here: Student Loan Disability Discharge.


Hey. I'm talking about my available balance for the subsidized and unsubsidized student loan money that I can take out After the whole loan forgiveness period ends in three years.

Will my currently low available balance of sub and unsub loans be renewed to the original balance since my old debts were forgiven?

TheCollegeInvestor

If you want to go back to school AFTER the 3 year monitoring period, you can only take out new loans unless:
- You obtain a certification from a physician that you are able to engage in substantial gainful activity
- You sign a statement acknowledging that the new loan cannot be discharged in the future on the basis of any injury or illness present at the time the new loan.

Basically, you can't get a second round of TPD.

I'm not quite sure what you mean your "available balance renewed to your original balance".

willievermakeit

Quote from: TheCollegeInvestor on May 11, 2020, 01:45:01 pmI'm not quite sure what you mean your "available balance renewed to your original balance".

Will the amount of money I'll be eligible to borrow again change and become higher.

TheCollegeInvestor

The Federal loan limits don't change. Since these loans are forgiven, you can borrow up to the max (understanding that it won't ever be forgivable again).

See this: Student Loan Borrowing Limits.