U.S. News


Student Loans Will Be Waived For Thousands Of Disabled Americans

$7.7 billion of student debt will be waived for the nation's most severely disabled.
Posted at 10:27 PM, Apr 12, 2016

Nearly 400,000 permanently disabled Americans will soon receive a note in the mail from the Obama administration offering to dissolve their student loans.

In total, the U.S. Department of Education will waive $7.7 billion of debt in a move to help the nation’s most severely disabled.

The Obama administration has been working toward this for years by making it easier for some to receive the benefit, but according to a spokesman from the Department of Education, "Too many eligible borrowers were falling through the cracks, unaware they were eligible for relief."

To fix that, the Department of Education is working with the Social Security Administration to identify people and alert them to potential debt relief.

If a borrower has been given the designation "Medical Improvement Not Expected" by doctors, then they are eligible.

But obtaining that designation is rare. According to The Wall Street Journal, "A doctor must certify that the person’s physical or mental impairment can result in death, and has lasted at least 60 months or can be expected to last that long."

Thanks to the new outreach program, borrowers will simply sign a document to dissolve their debt.