You must have a total and permanent disability discharge to qualify. You can apply for IU in the meantime to get the loans discharged.
https://www.disabilitydischarge.com/TPD-101
How do I show that I am permanently disabled?
If you are a veteran, and we have received information from the U.S. Department of Veterans Affairs (VA) indicating that you have a service-connected disability (or disabilities) that is 100% disabling or that you are totally disabled based on an individual unemployability rating, we will contact you and explain how you may apply for a TPD discharge, but you will not need to provide documentation of your VA determination.
We regularly receive information from the VA identifying veterans who may qualify for TPD discharge.
If you are a veteran and you have a service connected disability (or disabilities) that is 100% disabling or are totally disabled based on an individual unemployability rating, but we did not contact you about a TPD discharge, you can apply and provide documentation from the VA showing that you have a service connected disability (or disabilities) that is 100% disabling or that you are totally disabled based on an individual unemployability rating, that includes the effective date of the VA’s determination.