Student loan debt continues to be a topic of debate. As the student loan debt continues surpassing credit card debt, it’s been seen as an issue that needs to be dealt with and quickly.
While the government can only minimally impact private student loans, there’s talk to have Federal student loans forgiven or at least discounted. However, the Trump Administration has been busy looking after our disabled veterans by signing an executive order to eliminate student loan debt for disabled veterans.
This order is for veterans who are permanently and total disabled. It gives them an expedited process to begin having their federal student loans forgiven. Keep in mind that this isn’t the only program out there.
Currently there is the Total and Permanent Disability Discharge or TPD for short.
The reason for this not being a well known process is the complicated application process.
As with anything relating to the government, it can be difficult to meet all the criteria and have an application approved. With this executive order, it is designed to make the process simpler and have results in a timelier manner.
U.S Secretary of Education Betsy DeVos was quoted as saying,
“Supporting and caring for those who have sacrificed much in service to our country is a priority for President Trump and the entire Administration”.
Now there are certain circumstances when a disabled veteran may not want to discharge their Federal student loans. If that’s the case, veterans do have 60 days to opt-out of the program and continue paying on their student loans.
The reason for not wanting to remove student loans can include tax benefits as well as future borrowing needs.
An added benefit as well to those who decide to take advantage of this program is there will not be a tax bill for those who decide to eliminate their Federal student loans.
According to Forbes.com, Trump is urging states to absolve those veterans who receive student loan discharges of state income tax.
If you are wondering if you qualify for this benefit, you will be mailed a letter that’ll begin explaining the certain criteria that must be met in order to obtain these benefits.
Some of the outlined criteria includes:
Being a veteran who is unemployable due to a service-connected disability
- Borrowers receiving Social Security Disability Insurance
- Supplemental Security Income benefits
- Borrowers certified as “totally and permanently disabled” by a physician.
Student loans are something for many they will not see go away unless they are paid off. Currently, the majority student loans are not bankruptable, and a few options include forbearance and suspended payments due to job loss or similar event.
This benefit aims to give back to those who’ve made great sacrifices for our country. The last thing someone who’s been permanently disabled should be worrying about is their student loan payment.
This gives them the potential to eliminate one more stress in their life and can better allocate money to medical needs and living expenses.
Should you wish to proceed with the application process, it can be done via email or telephone.
The phone number is 888-303-7818 and the email address is [email protected]
Hours are Monday through Friday 8am to 8pm EST.
Also, you can submit the application by mail to:
P.O. Box 87130, Lincoln, NE 68501-7130.