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Trump Administration Streamlining Student Debt Forgiveness for Permanently Disabled Veterans

Submitted by jhartgen@abi.org on

The Trump administration yesterday announced plans to make it easier for permanently disabled military veterans to have their federal student debt wiped away, the Washington Post reported. People with severe disabilities are eligible by law to have the government discharge their federal student loans, but the benefit has not been widely publicized. Working with the Department of Veterans Affairs, the U.S. Department of Education will begin identifying eligible veterans who will receive an application for loan forgiveness. Disabled veterans must sign and return the application to complete the process. The program builds on an effort started during the Obama administration to help severely disabled Americans. In 2016, the Education Department partnered with the Social Security Administration to identify borrowers receiving disability payments with the designation of “Medical Improvement Not Expected,” an indication they may be eligible to have their loans discharged. The agencies found 387,000 matches in their first review, of whom 179,000 were in default on their loans and at risk of having their Social Security benefits garnished.

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