U.S. Federal Student Loan Repayment Forgiveness

- Writer/Editor for Disabled World (DW)
Published: 2016/04/21 - Updated: 2023/11/29
Publication Type: Informative
Topic: Loans and Grants - Publications List

Page Content: Synopsis - Introduction - Main

Synopsis: New regulations brought forth make it much simpler for borrowers that are permanently disabled to qualify for student loan discharge.

The process for discharge is much simpler than it used to be in the past with no proof of disability needed.

Income driven repayment and forgiveness plans have been gaining popularity and helping millions of borrowers drop their monthly payment to as little as $0/month.

Introduction

President Obama and his administration plan to forgive $7.7 billion in federal student loans held by Americans that are currently disabled. The student loan debt burden has been a huge problem for individuals that are permanently disabled. Even with programs existing that allow for these debts to be forgiven, hundreds of thousands of borrowers simply don't know that this program exists nor how to apply.

Main Item

With this new update, The U.S. Department of Education and President Obama took steps to help these individuals. Working hand in hand with the Social Security Administration, the department has been seeking out borrowers that are receiving disability payments and have the status of 'Medical Improvement Not Expected'. There have been a total of 387,000 matches out of which 179,000 are currently in default and at risk of having their social security benefits as well as tax returns garnished.

Effective this week, borrowers who are in this group will receive a letter from the government outlining the steps needed to receive a discharge and total forgiveness of their federal student loan debt. The process for discharge is much simpler than it used to be in the past with no proof of disability needed. Borrowers who receive this letter will simply need to sign it and send it back.

While this new change is a great step toward helping Americans tackle their student loan debt, the $7.7 billion is only half of one percent (0.5%) of the total $1.344 trillion in federal student loan debt. Aside from this program there are other options available for borrowers that do not fit this criteria. Income driven repayment and forgiveness plans have been gaining popularity and helping millions of borrowers drop their monthly payment to as little as $0/month.

Student Debt Advocates has been advising borrowers on such repayment and forgiveness plans for multiple years. With over 15,000 people that have been advised, there has been real steps toward made toward making a dent in the student loan debt load burden that borrowers have struggled with.

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Citing Information and Page References

Disabled World (DW) is a comprehensive online resource providing information and news related to disabilities, assistive technologies, and accessibility. Founded in 2004 our website covers a wide range of topics, including disability rights, healthcare, education, employment, and independent living, with the goal of supporting the disability community and their families.

Cite This Page (APA): Langtree, I. C. (2016, April 21 - Last revised: 2023, November 29). U.S. Federal Student Loan Repayment Forgiveness. Disabled World (DW). Retrieved February 9, 2025 from www.disabled-world.com/disability/finance/forgiveness.php

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