Four factors are used to clear someone to receive this loan. The first one is unemployment. The veteran affairs department should certify that a person cannot hold any job position owing to the disability. The next factor is that the person should be receiving disability allowances from the social security or other supplementary benefits. The review date should not be more than seven years ago.
A physician needs to have certified that the person is permanently and totally disabled. The definition of this is inability to take part in substantial activity with gains because of medical or physical impairment which can result to unexpected death. It should have gone on for not less than five years.
Everyone applying for this kind of a discharge must make the application online. This is emphasized so that an applicants submit the application just once. This can be done using your phone or a computer. There is a vendor to help you reach your federal loaners online to notify them that you have applied for disabilities discharge. This requires them to hold your loan for at least three months until the discharge application is processed.
Failure to submit your application within those three months means that the loans will return to repayment status and if there is any interest which has accrued; it will have to be added onto the principal balance. However, if the application is submitted, the loans have to be held until the review process is over. Denials and approvals are mailed to the applicant within two months.
Apart from the loans which have been granted with the certification of veteran affairs department, the rest have to be put on a 3-year monitoring. Demands may be made periodically for the borrower to submit proof that they still qualify for this type of discharge.
It is crucial that the receiver of the discharge open and respond to the requests send periodically in regard to the loan. If not in a position, he or she can ask someone else to assist. Failure to do this means that the loan will be reinstated. The person will have to make the application again or else pay up the dues on other federal loans which were been put on hold.
If the borrower gets a new grant or federal loan, he or she will be denied the discharge and the other loans he or she had taken will no longer be on hold. You will have to send every holder a copy of the disability loan application form except for those who are permanently and totally disabled for proof that you have indeed applied for such a loan.