Disabled Veterans Student Loan Discharge Made Simple

Author: U.S. Department of Education
Published: 2018/04/17 - Updated: 2026/01/14
Publication Type: Announcement
Category Topic: Finance - Related Publications

Page Content: Synopsis - Introduction - Main - Insights, Updates

Synopsis: This report details a federal initiative that makes it significantly easier for disabled veterans to discharge their student loans through a collaborative effort between the U.S. Department of Education and the U.S. Department of Veterans Affairs. The information comes directly from official government sources and represents actual policy implementation, making it highly authoritative for veterans seeking debt relief. The program works by automatically matching federal student loan records with VA disability databases, then proactively mailing pre-filled discharge applications to eligible veterans - removing bureaucratic barriers that previously made the process difficult. This streamlined approach proves particularly valuable for disabled veterans who may face physical or cognitive challenges in navigating complex financial paperwork, and for seniors who served in earlier conflicts and still carry education debt - Disabled World (DW).

Introduction

Simplifying the loan forgiveness process and proactively identifying veterans with federal student loans who may be eligible for a discharge.

The U.S. Department of Education (Department) has partnered with the U.S. Department of Veterans Affairs (VA) to make it easier for America's disabled veterans to have their federal student loans discharged.

"Our nation's veterans have sacrificed much for our country, it is important that, in return, we do all we can to give them the support and care they deserve," U.S. Education Secretary Betsy DeVos said. "Simplifying the loan forgiveness process and proactively identifying veterans with federal student loans who may be eligible for a discharge is a small but critical way we can show our gratitude for veterans' service."

Main Content

Acting VA Secretary Robert Wilkie said;

"The hard work put into this important initiative by two large federal agencies for our veterans and their families is impressive in scope and further underscores VA's values. I want to thank Secretary DeVos and her team for partnering in this wonderful effort for those who have given so much."

Starting this month, the Department will begin matching borrowers on the National Student Loan Data System (NSLDS®), who have federal student loans or aid through the Teacher Education Assistance for College and Higher Education (TEACH) Grant Program, to the VA database.

Borrowers positively identified in the match will be mailed a customized letter that will explain eligibility for loan discharge and include a total and permanent disability (TPD) application. The borrower can sign and return the application to complete the process of applying for a TPD discharge.

U.S. Department of Education (ED) Overview and Mission Statement

ED's mission is to promote student achievement and preparation for global competitiveness by fostering educational excellence and ensuring equal access.

ED was created in 1980 by combining offices from several federal agencies. ED's 4,400 employees and $68 billion budget are dedicated to:

Establishing policies on federal financial aid for education, and distributing as well as monitoring those funds.
Collecting data on America's schools and disseminating research.
Focusing national attention on key educational issues.
Prohibiting discrimination and ensuring equal access to education.

Insights, Analysis, and Developments

Editorial Note: The collaboration between these two major federal agencies represents a meaningful shift from placing the burden of discovery on disabled veterans to having the government take an active role in identifying and reaching out to those who qualify. While the program was launched in 2018, many veterans remain unaware of their eligibility for total and permanent disability discharge, particularly those who incurred their service-connected disabilities decades ago. Financial relief through student loan discharge can free up limited disability income for essential medical care, housing, and daily living expenses - resources that veterans with service-connected disabilities often need more than the general population. As federal student loan policies continue to evolve, this veteran-focused initiative stands as a practical example of how targeted administrative changes can deliver tangible benefits to those who've sacrificed for their country - Disabled World (DW).

Attribution/Source(s): This quality-reviewed publication was selected for publishing by the editors of Disabled World (DW) due to its relevance to the disability community. Originally authored by U.S. Department of Education and published on 2018/04/17, this content may have been edited for style, clarity, or brevity.