Author Topic: Private student loans and permanent disability  (Read 989 times)

FI by 2035

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Private student loans and permanent disability
« on: May 23, 2016, 01:33:01 PM »
A relative of mine has suffered from some major health problems recently. Doctors haven't been able to give us a prognosis yet, so I do not know if it will cause a permanent disability. Tissue in the brain has been damaged, and they say it will just take a lot time to see if it will heal and if there will be any permanent deficits.

I have been trying to help out with making sure bills are taken care of. I am concerned about their private student loans. I know there is a co-signer who would be placed under extreme burden if they are held accountable for the loans. I know with federally backed student loans, there is a process to get loan forgiveness in the case of permanent disability. I tried looking it up for the private loans through Chase Bank, and haven't been able to find a straight answer. Does anybody have any experience with this?  I'm guessing it is probably a case by case basis but I'm just wondering if they offer any kind of debt forgiveness or if it just goes straight to the co-signer.

Cassie

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Re: Private student loans and permanent disability
« Reply #1 on: May 23, 2016, 01:37:45 PM »
I would call Chase but I think with private loans it goes right to the co-signer.If he gets to the point that work can be considered please call the Bureau or Department of Vocational Rehabilitation in his state. It is a federal/state program run by the states. This is their area of expertise and they will do a full vocational evaluation to see what type of work/training he might need to get back into the work force. It is free to most people unless he has a spouse making a ton of $. They can also pay for training, etc.