Total and Permanent Disability (TPD) Discharge Transition and updates

By Marlene Seeklander

Borrowers seeking a TPD Discharge can now submit forms and track their progress at StudentAid.gov.

In an April 7 Electronic Announcement, Federal Student Aid (FSA) announced that the TPD Discharge process has now fully transitioned to FSA as of March 23, 2025 and allows borrowers seeking TPD to submit their TPD forms and track their progress to forgiveness via StudentAid.gov.

This transition also means that all TPD processing, including TPD loan assignments, has resumed.

While the regulations and process for TPD discharges haven’t changed, the biggest change is the TPD Federal Loan Servicer that will process TPD assignments from loan holders. FSA has not yet announced the servicer for this process.

Until the new servicer is ready to accept transfers, schools and guaranty agencies are not able to transfer loans and need to continue to hold them until further information is available.

The following information is provided in the announcement for loan holders:

  • All TPD assignments held by guaranty agencies and schools since December 20, 2024, should remain where they are until further notice.
  • The TPD Federal Loan Servicer will now send the TPD Loan Holder Notification (LHN) Files to loan holders.
  • Loan holders will need to communicate with borrowers who call regarding TPD that there is no longer a pause on TPD processing. For more information about the TPD process, borrowers should be referred to StudentAid.gov/disabilitydischarge or the discharge line at 1-888-303-7818.

The announcement also outlines changes to the TPD LHN File as of March 23, 2025:

  • Loan holders will receive the TPD LHN File from TGEE778, which is a new mailbox.
  • Loan holders can only receive the TPD LHN File through SAIG as receiving the file via email is no longer an option. Loan holders who need to enroll for this service can refer to the TPD Loan Holder Notification File, which is also an attachment to the announcement.

Loan holders who need help enrolling for the TPD LHN service to their SAIG mailbox should contact the FPS Help Desk at 1-800-330-5947 or by email at support@fps.ed.gov.