Q: Does a disabled graduate have to pay back all of the loan borrowed? My daughter is disabled from diabetes and has been unable to work, but is still paying on her loan. Any help will be appreciated.
Thank you, Wanda.
A: Your daughter has several options in the repayment of her student loan due to her disability. If she is temporarily disabled due to her diabetes and unable to obtain employment, than her loan servicer can grant her a temporary total disability deferment. This deferment will temporarily suspend her loan payments until such time she is able to obtain employment. Keep in mind during the deferment period her loan will be accruing interest in most cases.
The second option is if your daughter diabetes causes total and permanent disability which will not allow her to obtain employment now or in the future. Your daughter’s student loan servicer will require a letter of certification from her physician stating your daughter is total and permanent disability in order for her loan servicer to complete the borrower’s discharge documents. In either case, your daughter must contact her current student loan servicer to discuss both of these options.
MARY JO LAMBERT-TERRY
As Director of National Lending Associates, Inc. (NLA); and President of The Student Loan Processors, Inc. (TSLP); and Executive Vice President, Sales of Education Loan Source, Inc. (ELS) [wholly-owned subsidiaries of NLA]; Ms. Lambert-Terry offers more than 15 years of strategic management experience in the student lending industry. In her role as President of TSLP, Ms. Lambert-Terry oversees the day-to-day management and strategic direction, assisting students and their families with low-cost, comprehensive education financing solutions. As Executive Vice President, Sales of ELS, Ms. Lambert-Terry is responsible for managing the direction and marketing of its Custom Loan Source ProgramSM to regional and community banks.