Choosing Between Federal Loan Consolidation And Disability Debt Forgiveness

Government schemes like disability debt forgiveness help people suffering from any sort of disability by discharging their loan obligations completely. Thus, if you are suffering from any sort of total or permanent disability, you do not have to worry about the repayment of your student and other loans, since you have the option to get the same discharged by applying for this disability forgiveness plan. At any given point of time, there are many different schemes and plans which the government puts in force to help different sections of the society with the different problems that they may be facing. Hence, while this disability plan may be in force, you would also have the option to apply for the federal loan consolidation program.

It is very important for a person to consider all the schemes and plans that are in force at any given point of time, consider for which all schemes he or she is eligible and then decide applying for which program would be his or her best option. In many cases, if you have applied for one program, you would automatically become disqualified to apply for another program. For example, if you have to choose between Debt Disability Forgiveness and federal loan consolidation program, you should always opt for the disability program first and then if that does not work out, then apply for loan consolidation.

There are three main situations, which any person deliberating between the above two loans, faces:

Already Applied For Loan Consolidation

If you have already applied for the Federal Student Loan Consolidation program, then what you need to do is immediately contact the department or government department handling the discharge of this program and request them to suspend your application for some time. During this time, you need to contact the TPD and submit your application for debt forgiveness for them. The department will consider your application and if they find you are eligible for the same, all your loans will get discharged automatically and you will not need to avail the loan consolidation program. However, if you fail to make the cut for debt discharge, then you can go ahead and apply for loan consolidation.

Not Applied For Either Programs

If you have not yet applied for any of the above schemes, then first you need to apply for disability debt forgiveness. In case you do not get the necessary support from this department, due to whatever reasons, you can then go ahead and apply for loan consolidation. The fact that you had first tried for debt forgiveness will not have any effect on your application for loan consolidation.

Loan Consolidation Approval In Hand

The third situation which can arise is that you had applied for loan consolidation and the same has already been approved by the concerned department. This does not stop you from becoming eligible for debt forgiveness and you can still apply for the same. In case, you do manage to qualify for loan discharge under disability loan forgiveness, you can inform the loan consolidation department to cancel your application and approval.