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Campaign Alerts Eligible Disabled

Campaign Alerts Eligible Disabled

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 rene@freeabq.com

Featured photo credit: CC LendingMemo.com

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Rene Thompson is a staff reporter at ABQ Free Press. Email her at rene@freeabq.com.

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  • […] Campaign Alerts Eligible Disabled to Loan Forgiveness […]

    REPLY
  • h. gearhart
    February 16, 2017, 5:16 pm

    I can tell you exactly why more of these ‘identified as disabled" persons have not taken advantage of this new loan discharge scheme… Its because the majority of them have never been contacted about it by the Dept. of Ed. A friend sent me info about a recent GAO report (Dec. 2016). The report said that of the 400,000 +/- persons identified as eligible for this program, the Dept. of Ed. has only contacted approximately 1/3 of those people. A lousy 1/3 of them. Im on SSDI and have been for 11 years, and I also have a defaulted student loan. My SSDI benefit has been getting docked for my loans for the past 4 years. My benefit payment is reduced to $750/mo. because of this. This puts my income well below the federal poverty level. I can attest 1st hand that I was never contacted on this matter. None of the other people I know in the same situation as myself have been contacted either. Nothing. I sent an email to Dept. of Ed. to find out why I wasnt contacted about this… They never gave me an answer to that question, even after specifically asked again 2 more times. All they would say is that if I felt I should have been contacted, to basically follow the regular steps for a discharge application. I thought it strange they couldnt/wouldnt tell me how Ive managed to slip thru the cracks when seeking default help AGAIN. For anyone in a position such as mine, on SSDI and in default, the government, landers, and collection agencies are missing 1 key point of why more of us arent resolving our defaults. The truth is that the majority of default resolution and loan rehabilitation options offered are only available to persons who are NOT delinquent or defaulted on their loans. Now, does that not defeat the entire purpose of these programs??? For the rehabilitation program people arent told that the rehabilitation payment amount (touted to slash payments, in some cases to $0) is paid in addition to any benefit payment offsets which are taken from your SSDI checks. So for the duration of your trial rehabilitation period you actually will be paying more than what the payment is being docked already! My payment is docked $100/mo. Ive been trying desperately since 2013 to stop the deducation of my SSDI, to no avail. It doesnt sound like much, but that $100 every month is a world of difference to my fixed income! I tried to get out of default be enrolling in the income based repayment plan to stop the offset. And at the very end of the process thats when it was sprung on me that the "new" $5 payment under the paln was to be paid on top of the $100 already being taken for 9 months. If I were able to afford to pay even more, why would I be wanting to stop my payment offset? The GAO report also stated that the Dept. of Ed. was also supposed to have stopped taking benefit offset payments from their identified people starting last year, whether they sought loan help or not. They certainly havent stopped mine or others that I know. I have a sneaking suspicion my persistant and pointed requests for help and answers from the Dept. of Ed. has resulted in them retaliating by starting crap with the Social Security for me. This is just my speculation.So all the money spent on researching, organizing, and implementing this scheme has proven to be exactly that- a scheme. All the hype about helping a disadvantaged group of loan holders who are already struggling is nothing but a bunch of bullshit. And its nobody but the Dept. of Eds fault for doing a lousy half-assed job. There will be little to no significant change in this department, or any other department, until the proprosed programs are thoroughly vetted before being put in place, and until heads start rolling in this and all government departments for those who dont see fit to do their best job to serve the interests of the people. I hope my comment helps somebody, or at least heads off further frustration in the student loan scam.

    REPLY
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Dennis Domrzalski is managing editor of ABQ Free Press. Reach him at dennis@freeabq.com.