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Permanently Disabled People Will Soon Have Student Debts Forgiven

Permanently Disabled People Will Soon Have Student Debts Forgiven

| Jul 25, 2016

The government will soon forgive the student loan debt of approximately 400,000 Americans with permanent disabilities. Plans were initially conceived four years ago to simplify the process that allowed permanently disabled individuals to use their Social Security designation to apply for a discharge of school debts. Now, the U.S. Education Department is working together with the Social Security Administration to identify eligible borrowers to help them through the debt forgiveness process.

Too many disabled Americans have been unaware of their relief eligibility, and the government has recognized the urgency to make it easier, rather than more difficult, to help people with a designation of “Medical Improvement Not Expected” obtain these benefits. Through these efforts, the government has identified approximately 387,000 eligible individuals, 179,000 of whom have defaulted on their student loans. Individuals in default are in danger of having their SSD benefits garnished and losing their tax refunds to pay back the debt – benefits that they desperately need to survive.

Over the next 16 weeks, eligible borrowers will be sent a government notice detailing the steps necessary to obtain a discharge. Since these individuals have already been pre-screened, they will have to submit documentation proving their disability status or eligibility.

Borrowers will also be made aware of the tax implications that come with student loan debt forgiveness, as the government has the right to impose a tax on the amount of the discharge.

Have Questions About Social Security Disability Benefits? Speak with an Attorney Today

If you are collecting benefits and yet are still struggling to meet all of your financial obligations, George Sink, P.A. Injury Lawyers encourages you to get in touch with a member of our legal team to go over your situation and discuss your options. We are also available to assist you with the submission of SSD claims or appeals. Our goal is to help you obtain the benefits you are entitled to as quickly as possible.

To schedule a FREE case evaluation, please click here to fill out an online form. For your convenience, we have several office locations throughout South Carolina.

Source: https://www.washingtonpost.com/news/grade-point/wp/2016/04/12/obama-to-forgive-the-student-debt-of-permanently-disabled-people/?tid=sm_fb

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