Why have nearly 400,000 people on permanent disability who are eligible for loan forgiveness failed to avail themselves of that program?
DOE Announces Campaign Promoting Loan Forgiveness Program
BY RENE THOMPSON
There’s a campaign to get almost 400,000 permanently disabled people whose student loan debt is already eligible for forgiveness to avail themselves of that program, Obama and the U.S. Department of Education announced Tuesday. The change is estimated to cover $7.7 billion of student loan debt accumulated by permanently disabled citizens.
People who have been matched as qualified should expect a letter during the next 16 weeks. That correspondence will detail how and why they are suitable for loan forgiveness. People who are classified as permanently disabled are listed as “medical improvement not expected” by the Social Security Administration.
The SSA and DOE are working together to identify borrowers who receive social security and are already eligible for loan forgiveness who haven’t taken advantage of the program; so far, they have found 387,000 people. At least 179,000 were found in default status on student loans, and some of those peoples’ social security benefits are currently being garnished.
Debtors could face tax implications as the Internal Revenue Service is allowed to tax any amounts forgiven, and they will notify people of those amounts via mail.
The student debt when this article was written is $1,342,630,314,243, and it’s currently rising at $2,726 per second, according to the Federal Reserve.
To learn more about loan forgiveness for those on Total Permanent Disability (TPD), visit disabilitydischarge.com.
Rene Thompson is a staff reporter for ABQ Free Press. Email her at firstname.lastname@example.org
Featured photo credit: CC LendingMemo.com