Cancer and Student Loans: Forgiveness and Relief Options

• There is no specific federal student loan forgiveness program exclusively for cancer patients, but several relief options are available, including Cancer Treatment Deferment and Total and Permanent Disability DischargeTotal and Permanent Disability Discharge (TPD)A federal loan discharge for borrowers who are totally and permanently disabled, as documented by the Department of Veterans Affairs, the Social Security Administration, or a physician's certification..
• The Cancer Treatment Deferment, established by the Deferment for Active Cancer Treatment Act of 2017, allows you to pause federal student loan payments during active cancer treatment and for six months afterward.
• Income-Driven RepaymentIncome-Driven Repayment (IDR)A category of federal student loan repayment plans that calculate monthly payments based on income and family size rather than loan balance. Any remaining balance can be forgiven after 20–25 years of qualifying payments. plans can significantly lower your monthly payments based on your income, which can be particularly helpful if your cancer diagnosis has impacted your ability to work.
• It’s crucial to communicate with your loan servicerLoan ServicerThe company that manages a borrower's federal student loan account, processes payments, and handles applications for repayment plans, deferment, forbearance, and forgiveness on behalf of the U.S. Department of Education. about your cancer diagnosis, as they can guide you through available options and help you navigate the application processes for various relief programs.
• Beyond student loan assistance, numerous financial aid programs and resources are available for cancer patients, including government assistance, nonprofit organizations, and hospital charity care programs.

Overview

When you’re fighting cancer, the last thing you should have to worry about is deciphering complex student loan repayment information. Yet, for many student loan borrowers, the struggle to understand and access loan forgiveness options feels like another uphill battle.

We get it. You’re dealing with doctor appointments, treatment schedules, and the emotional toll of a cancer diagnosis. The maze of U.S. Department of EducationU.S. Department of Education (ED)The federal agency that oversees federal student aid programs, issues regulations for federal student loans, and is the ultimate lender on Direct Loans. policies and ever-changing forgiveness programs shouldn’t add to your stress.

That’s why we’ve created this guide.

Ahead, we’ll cut through the noise to give you clear, up-to-date information on student loan forgiveness options specifically for cancer patients and survivors. From recent policy changes by Congress to practical steps you can take, we’re here to help make your student loans easier so you can focus on what matters most – your health and recovery.

Types of Cancer That May Qualify for Loan Relief

Different types of cancer can affect your ability to work and may qualify for various relief programs. Common qualifying cancers include:

• Breast cancer
• Leukemia
• Lymphoma
• Advanced stage cancers
• Cancers requiring intensive treatment regimens
• Metastatic cancers

The severity of your condition, treatment intensity, and impact on your ability to work will determine which relief programs you qualify for. For a complete list of qualifying medical conditions, see our guide on What Disabilities Qualify for Student Loan Forgiveness.

Is There Specific Student Loan Forgiveness for Cancer Patients?

No, there isn’t a federal student loan forgiveness program exclusively for cancer patients or survivors. But there are other forgiveness and relief programs you can take advantage of while you’re battling your illness. These options apply to various types of federal student loans, including Stafford loans, PLUS loans, Federal Family Education Loans, and Federal Perkins Loans.

• Cancer Treatment Deferment allows you to pause federal student loan payments during active cancer treatment and for six months afterward. You must be receiving cancer treatment to qualify. Submit a Cancer Treatment Deferment Request form certified by your doctor. Note that interest continues to accrue on unsubsidized loans during deferment, which may increase your loan balance.
• Total and Permanent Disability Discharge may be an option if your cancer results in long-term disability. The Biden administration recently expanded this program, making it easier to qualify. As of August 2024, $14.1 billion has been forgiven for 548,000 borrowers. It now includes automatic matching with Social Security Administration data and the Department of Veterans Affairs for eligible veterans.
• Income-Driven Repayment Plans, while not cancer-specific, can significantly lower monthly payments based on income. These plans can be particularly beneficial for low-income borrowers. The SAVE planSAVE Plan (SAVE)The Saving on a Valuable Education Plan, a federal income-driven repayment plan introduced in 2023 to replace REPAYE. Its implementation has been subject to ongoing litigation, and enrolled borrowers have faced court-ordered forbearance periods., designed to be more generous, is currently on hold due to legal challenges. Existing plans like IBR, PAYE, and REPAYERevised Pay As You Earn (REPAYE)A former federal income-driven repayment plan that capped payments at 10% of discretionary income, with forgiveness after 20 or 25 years. REPAYE was replaced by the SAVE Plan in 2023. are still available.

How to Apply for Cancer Treatment Deferment

Cancer Treatment Deferment allows you to pause federal student loan payments during active treatment and for 6 months after treatment ends.

• Eligibility: You must be receiving treatment for cancer to qualify. There are no restrictions based on loan type or when you borrowed.
• Duration: The deferment lasts for the full length of your treatment, plus an additional 6 months after treatment ends.
• Interest: Continues to accrue on unsubsidized Direct Loans, FFEL Program loans, and Perkins Loans during deferment.

How to apply:

1. Download the Cancer Treatment Deferment Request form from the Federal Student AidFederal Student Aid (FSA)The office within the U.S. Department of Education that manages federal grants, work-study, and student loans. It runs the FAFSA, the StudentAid.gov website, and oversees the federal loan servicers. website.
2. Fill out the form, including the physician’s certification section.
3. Submit the completed form to your loan servicer.

If treatment extends beyond 12 months, you’ll need to reapply annually. And if you anticipate ongoing financial difficulty, consider switching to an income-driven repayment plan before your deferment ends.

How to Get a TPD Discharge For Cancer

If your cancer has resulted in a total and permanent disability, you may be eligible for the Total and Permanent Disability Discharge program. This program can eliminate your remaining federal student loan debt, providing significant financial relief.

Recent changes have made this program more accessible. As of August 2024, $14.1 billion has been forgiven for 548,000 borrowers. Here’s what you need to know:

You may be eligible if you:

1. Receive VA disability benefits
2. Receive Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI)
3. Have a physician certify your disability

The application process has been simplified, with some borrowers receiving automatic discharge through data matching with federal agencies. This means you might not even need to apply to receive the discharge.

How to Enroll in an IDR Plan

Balancing cancer treatment and student loan obligations can be overwhelming. Here’s a step-by-step guide to help you navigate this challenging period:

1. Gather Your Loan Information: Log into your Federal Student Aid account ( studentaid.gov) to view all federal loans. Contact private lenders for information on any private loans. Make a list of loan servicers, balances, and current payment amounts.
2. Inform Your Loan Servicers: Contact each servicer immediately about your cancer diagnosis. Ask about cancer-specific options like Cancer Treatment Deferment. Request information on hardship programs or flexible repayment plans.
3. Explore Immediate Relief Options: Apply for Cancer Treatment Deferment for federal loans. For private loans, ask about forbearance or hardship options. Consider switching to an income-driven repayment plan if you’re still working but earning less.
4. Document Everything: Keep a detailed log of all communications with loan servicers. Save copies of all medical documentation related to your diagnosis and treatment. Maintain records of any changes to your employment or income due to your illness.
5. Review Forgiveness Programs: Check eligibility for Total and Permanent Disability Discharge if your condition is severe. Look into Public Service Loan ForgivenessPublic Service Loan Forgiveness (PSLF)A federal program that forgives the remaining balance on Direct Loans after 120 qualifying monthly payments made while working full-time for a government or qualifying nonprofit employer. if you work in a qualifying field. Research state-specific loan forgiveness programs for cancer patients.
6. Consider Consolidation: Evaluate the pros and cons of consolidating federal loans. Benefits may include simplified payments and access to additional repayment plans. Be cautious, as consolidation can reset forgiveness timelines and may not lower interest rates.
7. Plan for the Future: Set a reminder to reassess your options every 3-6 months as your situation changes. Prepare for the end of deferment or forbearance periods. Consider setting up auto-pay when you resume payments to avoid missed payments.
8. Seek Expert Help: Consult with a financial advisor specializing in student loans and medical debt. Work with hospital social workers who may know of additional resources. Consider contacting cancer support organizations for financial guidance.

Financial Assistance Beyond Student Loans

As you battle cancer, you’re likely facing financial pressures beyond just student loans. Here are other financial assistance programs that can help ease your overall financial burden:

Government Assistance

• Social Security Disability Insurance (SSDI): You may qualify for monthly payments and eventual Medicare eligibility.
• Medicaid and Medicare: These programs offer health insurance coverage for eligible individuals.

Nonprofit Organizations

• American Cancer Society: Offers help with transportation, lodging, and free wigs.
• CancerCare: Provides financial assistance for cancer-related costs and resource referrals.
• The Leukemia & Lymphoma Society: Offers various support for blood cancer patients.
• Patient Advocate Foundation: Provides a financial aid fund for treatment-related expenses.

Other Options

• Check out state-based student loan forgiveness programs
• Pharmaceutical patient assistance programs
• Hospital charity care programs
• Local cancer support organizations
• Fundraising platforms like GoFundMe

Helpful Resources

• Cancer Financial Assistance Coalition
• Triage Cancer’s Financial Resources

Remember to discuss these options with your healthcare team and hospital social workers. They can help you find programs you’re eligible for and with application processes.

Bottom Line

While battling cancer, managing student loans shouldn’t add to your stress. Remember, you have options:

• Cancer Treatment Deferment
• Total and Permanent Disability Discharge
• Income-Driven Repayment plans

Your health is the priority. These programs can provide financial relief during your recovery. Every situation is unique, so don’t hesitate to seek personalized advice.

Want to take this off your plate? Book a call with one of our student loan experts. We’re here to help you navigate your options and focus on what matters most – your health.

UP NEXT: How to Apply for Student Loan Forgiveness