From: Nfb-announce [mailto:nfb-announce-bounces@xxxxxxxxxx] On Behalf Of John
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Sent: Wednesday, April 13, 2016 7:32 PM
Subject: [Nfb-announce] [Nfbv-fairfax] Obama to forgive the student debt of
permanently disabled people - The Washington Post
Please be sure to share this with as many blind
college students and recent graduates as you can!
Obama to forgive the student debt of permanently disabled people
The Obama administration plans to forgive $7.7
billion in federal student loans held by nearly
400,000 permanently disabled Americans.
By law, anyone with a severe disability is
eligible to have the government discharge their
federal student loans. The administration took
steps four years ago to make the process easier
by letting people who are totally and permanently
disabled use their Social Security designation to
apply for a discharge, but few took advantage.
The Department of Education is now taking it upon
itself to identify eligible borrowers and guide
them through the steps to discharge their loans.
â€œToo many eligible borrowers were falling
through the cracks, unaware they were eligible
for relief,â€ said Education Under Secretary Ted
Mitchell in a statement. â€œAmericans with
disabilities have a right to student loan relief.
And we need to make it easier, not harder, for
them to receive the benefits they are due.â€
[Sidelined by disability and saddled with student loans]
Working with the Social Security Administration,
the department has been identifying borrowers
receiving disability payments and have the
specific designation of â€œMedical Improvement
Not Expected,â€ which indicates they are
eligible for the discharge. The agencies found
387,000 matches in its first review. About
179,000 of those people are currently in default
on their loans, putting them at risk of losing
their tax refunds and having their Social Security benefits garnished.
â€œThe creation of the matching program is a
great first step, but the administration needs to
go further to ensure that no borrower who has a
right to student loan relief has their benefits
taken,â€ said Persis Yu, the National Consumer
Law Centerâ€™s student loan borrower assistance
project director. â€œBorrowers receiving SSDI
need these payments to survive.â€
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Starting next week, borrowers identified in the
match will receive a letter from the government
explaining the steps needed to receive a
discharge. They will not be required to submit
documentation of their eligibility, unlike
disabled borrowers who apply for the discharge on
their own. Notification letters will be sent over
a 16-week period, and followed up with a second letter after 120 days.
The letters will inform borrowers of the tax
implication of the discharge, since the
government has the right to tax the amount of money forgiven.
[Obama plans to make it easier to pay your student loans]
Rising student debt looms over parents and children
Many middle class families borrow to build their
careers and send their children to college, and
now struggle to pay back growing student loan
debt. A new AP analysis shows it's a rising multi-generational problem. (AP)
Tuesdayâ€™s announcement is an outgrowth of
President Obamaâ€™s Student Aid Bill of Rights,
which directed federal agencies to overhaul the
way Americans repay student loans.
Corbb, from my iPhone
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