TOTAL AND PERMANENT DISABILITY DISCHARGE PROCESS
Agenda TPD Background What is Total and Permanent Disability (TPD)? Recent Changes to TPD Perkins Schools Updated Processes Borrower Process to Apply for Discharge Physician Certification SSA determination Veteran s Discharge Eligibility Considerations for Schools TPD Servicer Contact Information
TPD Background
Background Nelnet awarded the TPD contract Nelnet s TPD Servicing and Customer Service
What is Total and Permanent Disability (TPD)
Overview TPD is a discharge William D Ford (Direct Loan) Program Federal Family Education Loan Program Federal Perkins Loan Program TEACH Grant Service Obligation Program
Definition 34 CFR 685.102(b) 1. Veteran Unemployable/Service-Connected Disability 2. Social Security Administration Social Security Disability Insurance Supplemental Security Income 3. Physician Certification Substantial Gainful Activity Physical or Mental Impairment
Definition 34 CFR 685.102(b) Physician Certification Can be expected to result in death Has lasted for a continuous period of not less than 60 months Can be expected to last for a continuous period of not less than 60 months Substantial Gainful Activity: A level of work performed for pay or profit that involves doing significant physical or mental activities, or a combination of both.
Eligible Loans William D Ford (Direct Loan) Program (Including *PLUS and Consolidation) Federal Family Education Loan Program (Including *PLUS and Consolidation) Federal Perkins Loan Program (including National Direct and National Defense) Teacher Education Assistance for College and Higher Education (TEACH) Grant Defaulted Loans *PLUS loan borrowers may apply based on their own disability, not that of the benefitting student.
TEACH Grant Four Years High-Needs Area Low-Income Convert to a Direct Unsubsidized Loan
TPD Servicer Process
High Level Overview 1. The TPD application and supporting documentation is received. 2. Review and verify all documents received with TPD application. 3. The first NSLDS check is completed to ensure no new federal student loans and/or TEACH grants were disbursed after the physician signature date. 4. Verify the physician s license and determine whether or not the application supports the conclusion that the borrower is totally and permanently disabled. 5. The medical review determines whether there is evidence that the borrower has the ability to work. 6. The second NSLDS check is completed to ensure no new federal student loans and/or TEACH grants were disbursed after the physician signature date. 7. The Federal Student Aid (FSA), a division of the Department of Education, reviews the application for final approval. 8. Review of application complete. Three-year monitoring period begins. Post July 1, 2010, applicants will be refunded for payments made from the physician signature date. Loans at this time will reflect a zero balance.
Negotiation Regulations
Recent Changes 1. Application Process One Application Received on or after July 1, 2013
Recent Changes 2. Social Security Administration Social Security Disability Insurance Supplemental Security Income
Perkins Schools
Assignment Procedures for Schools School reports to Credit Bureau and NSLDS 45-day Notification
Action Required Designate Contact Contact via ORG Tab NSLDS Disability Processing TPD Loan Holder Notification File
Action Required TPD Loan Holder Notification File Suspend collection activity for 120 days Suspend collection activity indefinitely Application has been rejected Application has been approved
Action Required TPD Loan Holder Notification File 1. Log in to NSLDS Professional Access Web site and click on ORG Tab at the top of the page 2. Under Organization Contact List, click on the Add New Contact button 3. Under Organization Contract Add, click on the dropdown menu for Available Functions and select Disability Processing 4. Enter all data elements for the TPD LHN File contact 5. Click on Submit button
Action Required TPD Loan Holder Notification File TPDNotification@nelnet.net Subject Line N!! Loan Holder Notification File Security Appliance Detailed information on Perkins TPD can be found here.
Application Process
Borrower Applying for TPD Nelnet Total and Permanent Disability Servicer Call (888.303.7818) Go on-line www.disabilitydischarge.com www.nelnet.com Submits application to loan holder
Borrower www.disabilitydischarge.com New regulations Discharge procedures Eligibility criteria Post-discharge monitoring period Conditions for reinstatements TEACH Grant service obligations
Borrower Old Discharge Application December 31, 2013 January 1, 2014
Borrower Applicant s Representative Complete and submit TPD application Applicant Representative Designation Form Power of Attorney
Definition 34 CFR 685.102(b) 1. Physician Certification 2. Social Security Administration 3. Veteran
Physician Certification
Physician Certification Physician Certify the Application Doctor of Medicine (M.D.) or Osteopathy (D.O.) Submit the TPD application and any additional supporting documents to the Nelnet TPD Servicer
Social Security Administration (SSA)
Social Security Administration Social Security Disability Insurance (SSDI) Supplemental Security Income (SSI) Notice of Award
Determination Process
Determination Process TPD Servicing will: Submit to FSA for approval Loans are discharged Borrower notification Refunds
Determination Process Borrower Notification Discharge has been granted Loans /TEACH Grant Explains terms and conditions Explains potential reinstatement Requirements during the next 3 years
Determination Process 3-Year Post Monitoring Period Date discharge has been granted Proof of income NSLDS checks Veterans will not be subject to the three-year post-discharge monitoring period.
Determination Process Obligation to repay Annual income Receives new loans or TEACH Grant Fails to return any disbursements Receives notification from SSA
Determination Process Additional Medical Evidence Additional Review
Veterans
Veterans Unemployability determination Effective Date Physician signature not required
Veterans Discharge Process Determination of eligibility Obligation to pay Refunds
Veterans Discharge Process Determination of eligibility Re-evaluation Apply as a non-veteran
Eligibility after Discharge
After TPD Discharge Direct Loan or TEACH Grant Obtain a physician certification Sign a statement Student s file
Request New Loan During the 3-Year Post Monitoring Period Must resume payment Defaulted loans
Objectives Met TPD Background What is Total and Permanent Disability (TPD)? Recent Changes to TPD Perkins Schools Updated Processes Borrower Process to Apply for Discharge Physician Certification Veteran s Discharge SSA determination Eligibility Considerations for Schools TPD Servicer Contact Information
Contact Information
Contacts Email: disabilityinformation@nelnet.net Web Site: www.disabilitydischarge.com Phone: 1.888.303.7818 Fax: 303.696.5250 Office Hours: 8:00 AM 8:00 PM (ET), Seven days a week Mail U.S. Department of Education P.O. Box 87130 Lincoln, NE 68501
Contacts Phone: 1.888.303.7818 Fax: 303.696.5250 TDD/TTY Special Assistance Team
Sources Perkins Total and Permanent Disability Discharge Assignment Procedures (June 2013). http://ifap.ed.gov/eannouncements/attachments/perkinstpddischargeassig nmentproceduresattach.pdf www.disabilitydischarge.com www.nelnet.com
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