27 Apr Trump Administration to Forgive Student Loan Debt of Disabled Veterans
The U.S. Department of Education has partnered with the U.S. Department of Veterans Affairs (VA) to ease the burden of student loan debt for disabled veterans.
“Our nation’s veterans have sacrificed much for our country,” U.S. Secretary Betsy DeVos stated. “It is important that, in return, we do all we can to give them the support and care they deserve. Simplifying the loan forgiveness process and proactively identifying veterans with federal student loans who may be eligible for a discharge is a small but critical way we can show our gratitude for veterans’ service.”
Borrowers on the National Student Loan Data System (NSLDS) with federal student loans will be identified and cross referenced with those on the VA database.
These individuals will receive notice of eligibility via mail, in addition to a Total and Permanent Disability Discharge application. Veterans must sign and return the application to receive the student loan discharge.
It is estimated that there are tens of thousands of disabled veterans whom are unaware of their eligibility for student loan forgiveness.
The good news for many comes with word of the new tax law. Under this provision, disabled veterans will NOT owe federal income taxes on the forgiven student loan debt. This is a huge improvement from the previous law which considered the discharge to be taxable income.
Additional Information
Eligible borrowers may apply by email or phone.
Email: [email protected]
Phone: 888-303-7818
More information: Federal Student Aid
Veterans interested in applying for Social Security Disability or VA Disability Compensation with the help of Victory Disability should call 1-866-350-7229. To determine if you are eligible for SSDI benefits, complete our Social Security Disability Evaluation.
