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(General) Subject: TPD Discharge Information - Perkins Assignment Procedures Effective July 1, 2013

Posted Date:June 12, 2013

Author: Jana Hernandes, Service Director, Operations, Federal Student Aid

Subject: TPD Discharge Information - Perkins Assignment Procedures Effective July 1, 2013

In a May 17, 2013 Electronic Announcement on the Information for Financial Aid Professionals (IFAP) Web site, we explained how the total and permanent disability (TPD) discharge regulations will change on July 1, 2013.

This is the fourth in a series of Electronic Announcements that we will publish relating to the changes to the TPD discharge regulations. In this announcement, we provide procedures that schools participating in the Federal Perkins Loan (Perkins Loan) Program will follow when submitting all TPD discharge assignments to the Nelnet Total and Permanent Disability Servicer under the new regulations. These procedures are effective for those who submit TPD discharge applications on or after July 1, 2013.

Total and Permanent Disability Discharge Assignment Procedures

The TPD discharge assignment procedures that Perkins Loan schools must follow beginning July 1, 2013 are attached in PDF format at the end of this announcement.

Due to the new regulations, we have made the following significant changes to the Procedures document.
  • Removed all steps and procedures related to the TPD application. Applicants will submit TPD applications directly to the Nelnet Total and Permanent Disability Servicer. Perkins Loan schools will not include TPD applications in the assignment package.

  • Included a reference to the new Loan Holder Notification File. For complete information about the Loan Holder Notification File, refer to our second Electronic Announcement (May 24, 2013) posted to the IFAP Web site.

  • Included updated contact information and address for the assignment process.

  • Re-formatted the document by adding a table of contents and removed the appendices for the Assignment Form and Manifest Instructions by incorporating that information into the procedures document text. In addition, the sections have been re-numbered.

  • Removed the appendix for Veterans Disability Discharge and the process for referring veteran TPD applications. Note: If the borrower qualifies for discharge based on documentation from the VA, the loans are not assigned to the Department of Education (the Department). We will notify the school of the effective date of the VA determination. Upon receiving this notification, the school discharges the borrower’s loans and returns to the sender any payments received on or after the effective date of the VA determination that supported the borrower’s eligibility for discharge.

Contact Information

We appreciate the community’s patience and assistance as we implement the new total and permanent disability discharge regulations.

If you need assistance with TPD discharge processing, contact the Nelnet Total and Permanent Disability Servicer as outlined on the current Total and Permanent Disability Discharge and Veterans Disability Discharge Contact Information page.

Last Modified: 06/11/2013