July 8, 2009

Total and Permanent Disability Determination Process Clarified

On May 15, ED issued DCL GEN-09-07/FP-09-05 to explain the procedures for discharging Title IV loans based on a determination by the Department of Veterans Affairs (VA) that a veteran is unemployable due to a service-connected condition or disability. This HEOA provision establishes a separate standard for determining whether certain veterans are totally and permanently disabled for Title IV loan discharge purposes.

There are two types of VA determinations that qualify a veteran for discharge of his or her Title IV student loans:

• A determination that the veteran has a service-connected disability or service-connected disabilities that are 100 percent disabling; or
• A determination that the veteran is totally disabled based on individual unemployability.

The VA grants individual unemployability determinations only for service-connected conditions; therefore, any determination of individual unemployability qualifies a veteran for discharge. In the case of a determination that a veteran is 100 percent disabled, the determination must specify that the disabilities are service-connected.

The DCL also outlines procedures that must be followed when processing a disability discharge request for a veteran and includes a helpful Q&A component.

If you have questions regarding total and permanent disability determinations using VA documentation, please contact Eric Okeke, OGSLP Claims Manager, at 405.234.4342 or eokeke@ogslp.org.