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TPD Discharge Resumes & Loan Assignment Updates

  • 1 min read
StudentAid.gov

Federal Student Aid has confirmed that the Total and Permanent Disability (TPD) discharge process has fully transitioned to StudentAid.gov. As part of the Unified Servicing and Data Solution (USDS), TPD loan transfers and related procedures have now resumed.

Loan holders (i.e., guaranty agencies, lenders, and schools participating in the Federal Perkins Loan Program that are servicing their Perkins Loan portfolio) may submit loan transfers to the new TPD loan assignment servicer. Loan holders may submit all TPD assignments held since Dec. 20, 2024, including a TPD assignment rejected by the previous TPD servicer (this would have occurred after Dec. 20, 2024, but before Feb. 9, 2025).

FSA has updated their TPD discharge assignment procedures to reflect the new TPD loan assignment servicer. Generally, the regulations and overall process for TPD discharges has not changed. The key change to the procedures is to the servicer that handles the processing of a loan assignment from a loan holder.

Details and procedures can be found in the electronic announcement: (LOANS-25-07) TPD Discharge Information – Loan Transfers Resume, Updated Assignment Procedures Now Available