Student Loan Debt Of Eligible Disabled Veterans Forgiven
Student Loan Debt of Eligible Disabled Veterans Forgiven
On Wednesday, August 21st, 2019, the process began for forgiving the Federal student loan debt of eligible veterans. While at the 75th convention of AMVETS in Louisville, KY, he signed a memorandum on discharging the federal Student loan debt for qualifyung totally and permanently disabled veterans.
The Department of Education was ordered to eliminate the federal student loan debt owned by American veterans who are completely and permanently disabled. The president stated that “Altogether, this action will wipe out an average of $30,000 in debt owed by more than 25,000 eligible veterans.”
Because of the Higher Education Act of 1965, and the Higher Education Act of 2008, federal student loan debt is already discharged for veterans who are totally and permanently disabled. The problem is, the application process can be complicated. Veterans need to be able to prove they are eligible and that can be frustrating.
Because of this, fewer than half of the eligible veterans have used the program, which is why there is a push to change things.
The US Department of Education notified eligible veterans about the student loan discharge that they qualify for. After 60 days of this notification, veterans were allowed to decline the discharge.
With this memorandum, disabled veterans will not owe any federal income taxes on their discharged student loans and states are being urged to do the same. A group of bipartisan attorney generals from 51 states and territories wrote to the Education Secretary, urging the Department of Education to automatically forgive the student loan debt of eligible veterans who became disabled through their military service.
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About the author
Julie Provost is a freelance writer, and blogger. She lives in Tennessee with her National Guard husband and three boys.
