Will My Social Security Disability be Affected if My Federal Student Loan is Discharged?

Determining how best to manage your finances and student loans when you’re receiving Social Security Disability can be challenging. On one hand, one of the requirements for receiving Social Security Disability is your medical condition must prevent you from earning a certain amount of income. But on the other, having a disability can qualify you to get your federal student loans discharged, or forgiven, meaning you’ll suddenly have more money available to you each month. So, if you decide to make the case that your loans should be discharged due to your condition, will it affect how much you may receive in monthly disability payments? Our team of experienced West Virginia Social Security Disability attorneys can help you navigate these questions.

Your disability may mean you are eligible to have your federal student loans discharged. If your disability is considered to be “total and permanent,” you may qualify to have your loans permanently cancelled. And since it is because of your disability that the loans will be forgiven, it will not impact the amount you may receive in Social Security Disability. Your payments will not decrease if your loans are discharged. In addition, the extra income you have access to after your loans are cancelled will be excluded from taxable income for federal purposes (at least until 2025, when Congress will decide whether to renew the Tax Cuts and Jobs Act).

However, it is important to note that the fact that you receive disability payments alone will not necessarily make you eligible to have your loans discharged. There may be additional qualifications you must meet. Also, while you might be eligible to have your federal student loans forgiven, that may not be the case with any private loans you are responsible for.

If you have additional questions about Social Security Disability benefits, then contact us anytime at 877.526.3457. We have an experienced team of West Virginia Social Security Disability attorneys, and one of our representatives will be happy to answer your questions. Or if you’d prefer to contact us online, please fill out this form and we will respond to you shortly.