But be careful to make sure you won't lose your Medicare. I think you might. Once you retire, I think you go off disability. Once I turned 66+ x months, they notified me they were switching me automatically from disability to retirement. I didn't have to worry about Medicare, but you are much younger. Check both websites carefully and call them, or better yet, get appt to go see your closest SSA office.

Thank you for that. This is all relatively new to me so I'll go to the SSA office and see what they have to say.

Found them very knowledgeable and caring. Good luck and I hope things get better for you.

Disability Planner: How We Decide If You Are http://socialsecurity.gov/dibplan/dqualify5.htm

Disability Planner: What Can Cause Benefits To Stop?
http://socialsecurity.gov/dibplan/dwork2.htm

At least that's how I read it!

I'm going to make an appointment today to talk to the SSA.

If you start receiving a pension from a job for which you did not pay Social Security taxes—for example, from the federal civil service system, some state or local pension systems, nonprofit organizations or a foreign government—your Social Security benefit may be reduced. Also, tell us if the amount of your pension changes.
http://socialsecurity.gov/pubs/10153.html#a0=3&part2=

--You should still be ok, IMHO--

Let that part mature in its own separate thing to pay off later. If you withdraw it, the lump sum will not be as much as what its maturity pay-offs will be.

As for Disability, after two years of it you can at least be on MediCARE, but I don't know whether this translates into more cash (beyond the valuable medical benefits' worth).