Student Loan Debt Discharge for Disabled Veterans Update
Administrative Discharge of Federal Student Loans for 100% Disabled Veterans
(Updated: Part 2)
This post is to follow up on our July 3, 2019 post concerning the administrative discharge of Federal Student Loans based on a Veteran’s Disability Ratings.
Not much has changed with the exception of the newly released Presidential Memorandum issued on August 21, 2019. Perhaps you have heard about it.
The administrative discharge of Federal Student Loans for 100% Disabled Veterans is a program that was created in 2008, so it has been around for a long time. That being said, of those eligible, only a small percentage of the 25,000 Eligible Veterans have taken advantage of the program. Unfortunately, most Veterans who are eligible are either not aware, or have been mislead or misinformed. There is a big push to clear up this problem, including proposed changes in the law, through an Act of Congress.
Presidential Directive to Secretary of Veterans Affairs and Education Secretary
The President, just recently, issued a directive to the Secretary of Veterans Affairs and the Secretary of Education to work together, share the information, and be proactive in reaching, informing, and assisting all 100% totally and permanently Disabled Veterans in obtaining their discharge.
Earlier this year, Rep. Connor Lamb, D-Pa. and Senate Veterans Affairs Committee Chairman Johnny Isakson, R-Ga., each sponsored legislation to make the loan forgiveness automatic, putting the impetus of clearing the debt on federal agencies instead of the military veterans. Clearly, if Congress passed such a bill, the vast majority of problems would be eliminated.
As a fellow Veteran, I remain optimistic for my Brothers and Sisters who have served.
Blog Post July 3, 2019 – Student Loan Forgiveness Article: Disabled Veterans
Presidential memorandum: August 21, 2019
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