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Permanently Disabled People Eligible for Total Federal Student Loan Forgiveness

Written by Steve Rhode

The Obama administration is rolling out plans to forgive the federal student loan debt of people who are designated as permanently disabled by the Social Security Administration.

This is estimated to forgive about $8 billion in federal student loans and assist debtors who are permanently disabled from having benefits garnished and forcing them through struggles with their student loans.

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The Washington Post is reporting there are about 400,000 people who are eligible for forgiveness. Of those, about 180,000 are already in default on their loans.

This will not be an automatic process and debtors will be required to take some action. But in an effort to assist these student loan debtors, the Department of Education will soon begin sending out notices and instructions on what to do.

While I’ve certainly been critical of the Department of Education and servicers for their ability to make dealing with student loans a difficult process, it’s nice to see the government taking a proactive role in rolling these benefits out.

Sincerly,
Steve

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About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

1 Comment

  • Steve, Perhaps the crack in the DOE’s defensive armor is beginning to widen? When I tried to get a disability discharge via the TDP (Total Disability Provision), I waited and waited then was told I did not qualify. I reapplied, and NELNET never replied to the second attempt. As I opened my email today I saw your article and an article from Richard Fossey on the exact topic! Here is the link to Richard’s fine article on this timely and historic decisionhttp:http://www.condemnedtodebt.org/2016/04/feds-may-forgive-student-loans-of.html. Please take a look at Richard Fossey’s article. Best regards, Richard Allan Precht

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