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President Obama Forgives Student Loans of 400,000 Disabled People

by | Apr 21, 2016 | Social Security Disability |

President Obama Forgives Student Loans of 400,000 Disabled People

On April 19, 2016, the Obama Administration began sending letters to nearly 400,000 people in an effort to guide them through the process of discharging their student loans due to permanent disability. This is part of a new process by the U.S. Department of Education to help identify those that would be eligible for the already existing federal loan forgiveness program. The letters include an application for discharge of student loans and do not require the applicants to submit documentation proving their eligibility. The letters will be sent over a 16 week period with a second follow up letter to be sent after 120 days.

By law, anyone with a severe, permanent disability is eligible to have the government discharge their federal student loans. Four years ago, the Obama administration allowed for any borrower to use their Social Security designation to apply for a discharge. However, few took advantage of that process. The Obama administration is now making it even easier for the permanently disabled to discharge their student loans by identifying those who might eligible and guiding them through the process. The Department of Education will work with the Social Security Administration to identify those who are currently receiving disability payments and who have the designation of “Medical Improvement Not Expected.” In its first review, the Department of Education found 387,000 people who fall into this category, 179,000 of whom are in default on their student loans.

For more information on Social Security disability benefits, contact an experienced Social Security disability attorney at Gardberg & Kemmerly, P.C. today at 251-343-1111 for a free case evaluation. Gardberg & Kemmerly, P.C. represents Social Security disability claimants in Alabama, Mississippi, Florida, and Louisiana at all levels of the disability process from initial application to appeals to Federal Court.



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