What happens when a student loan is cancelled due permanent disability, but the student is rehabilitated?

student loan

When a guaranteed student loan is discharged and later cancelled due to what is considered a total and permanent disability but many years after the cancellation of the loan the individual is rehabilitated and able to return to the workforce with the necessary aid and support for their disability what happens to the student loan? I’ve been told that once a loan is cancelled it no longer exists, and I’ve been told that if the individual is able to return to the workforce the loan is reinstated. Which, if either, is correct? What is the answer? (I’m talking about in Oklahoma.)
I can find plenty of links, just no answer. Please don’t leave a link, if you don’t know then you just don’t know.

Passive Income
Categories : student loan



I found interesting information about your answer, college loans, scholarships, college grants & partime works here.
Good luck!


i found this footnote to loan discharge on the link below. if it has been more than 3 years since the loan was discharged, it looks like you would not have to repay it.

Beginning July 1, 2002, a borrower who is determined to be totally and permanently disabled will have his or her loan placed in a conditional discharge period for three years from the date the borrower became totally and permanently disabled. During this conditional period, the borrower doesn’t have to pay principal or interest. If the borrower continues to meet the total-and-permanent disability
requirements during, and at the end of, the three-year conditional period, the borrower’s obligation to repay the loan is canceled. If the borrower doesn’t continue to meet the cancellation requirements, the borrower must resume payment.

also take a look at this file that is specific to your state:


You are in luck. I had a student loan discharged due to disability. After 7 years, I was well enough to go back to school. Currently I am in school, and I receive financial aid and student loans. However, you cannot have your loans written off a 2nd time for the same illness. It would have to be a different illness. Lots of paperwork is required to become eligible again for loans but it can happen.

July 16th, 2009 at 3:47 am

First one is right. When a loan is cancelled all the parameters are washed off. For more details please visit

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