Obama To Forgive The Student Debt Of Permanently Disabled People

[Purveyor]

Source: Washington Post

By Danielle Douglas-Gabriel April 12 at 4:47 PM

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.

“Too many eligible borrowers were falling through the cracks, unaware they were eligible for relief,” said Education Under Secretary Ted Mitchell in a statement. “Americans 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.”

Working with the Social Security Administration, the department has been identifying borrowers receiving disability payments and have the specific designation of “Medical Improvement Not Expected,” 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.

Read more: https://www.washingtonpost.com/news/grade-point/wp/2016/04/12/obama-to-forgive-the-student-debt-of-permanently-disabled-people/

[bigwillq]

1. That's nice for them. But what about the rest of us?

I'll be paying off loans until I am dead.
In all seriousness, glad someone is getting some help/relief, but the country needs to make it more affordable to attend school. You have millions of students each year racking up huge debt and then get set off to an entry level job. The government, higher ed, big business, corporations make it impossible for the Average Joe to get ahead.

[JDPriestly]

11. I'm with you. It's as if we discourage people from becoming better educated and better informed.

Bernie was on the Budget Committee and he knows where the money lies buried -- in pork, defense contracts, in payoffs for things we Americans really don't need.

Bernie will find the money to educate young people. This is utterly essential. Top priority.

Of course, Hillary can't find the money. She doesn't know enough about our budget, plus she is in cahoots with those who get the kickbacks that impoverish our government.

[yurbud]

14. she won't look for the money unless Goldman Sachs says to

[progressoid]

31. You need to work harder.

Lazy deadbeat.

[blm]

2. Thank you, President Obama.

I completely back you up on this action and I hope every Dem here on DU will back you on this, as well.

[narnian60]

26. +1

[Renew Deal]

3. But there is no difference between the parties

[sulphurdunn]

7. If you are a new, non-disabled graduate,

owing more than you can repay until your hair turns gray, there is still no difference between the parties.

[eggplant]

12. That's true. And he didn't cure cancer today, either. Thanks, Obama. n/t

[sulphurdunn]

28. I wonder. If he could

cure cancer whether he'd cure it for everyone or just for those with Obama Care.

[bigwillq]

13. Yup.

For most of us, the government isn't helping us, even the DEMs. The government is broken, and every person in elected office today--Ds, Rs, Is---is responsible.
When you can't pay your bills or barely survive, one doesn't care about party politics.

[jillan]

4. Thank you Obama.

[LonePirate]

5. This is a great move by our president!

[CoffeeCat]

6. This is amazing!

Great job, President Obama.

[Journeyman]

8. My brother was permanently disabled 5 years after graduation from the University of California. . .

this was in the early '80s. By then (5 years after graduation) he had already paid off everything he owed. That's an incredible statement, when you think of it, on the state of education in only slightly more than one generation.

I'm happy the Administration has taken this step. It's a good beginning.

[Tab]

9. If we are currently permanently disabled, does this mean we can take courses and have it forgiven?

Just wondering

[dana_b]

16. good question

I'm disabled too and although they say it's "permanent", I'm still hoping to be able to be somewhat productive someday and I would need some schooling.

[TexasBushwhacker]

19. Have you looked into what your state offers?

Most offer some kind of training or retraining.

[Tab]

23. No, I'm just learning about this now, but I'd be interested if it was also available...

to current disabled.

[TexasBushwhacker]

30. Generally yes

Keep in mind that state resources are going to be limited. They aren't going to send you to med school. But I had a friend who had been a trucker who messed up his back. The state helped pay for him to learn how to be a draftsman. They want you to be able to work because people who have jobs pay taxes! It's not just a humanitarian thing. Feel free to PM me if you like.

[shenmue]

15. Bravissimo

[PatrynXX]

17. Depression can be a permanent thing if your unwilling to get out

or unable like me. still if they are forgiven hopefully it won't ruin their credit report like it did mine which kinda pushes one down further

[seabeckind]

18. Gotta wonder about timing.

Student debt issue -- http://www.democraticunderground.com/10141412256

Quietly taking decisive action to cut banking down to size -- http://www.democraticunderground.com/10027745608

Kills Largest Corporate Attempt Yet To Flee Overseas And Dodge Taxes -- http://www.democraticunderground.com/10027743166

It's almost like he's finally recognized some of the issues that people have been talking about.

At a time when his friend is coming under fire for these very issues.

[JDPriestly]

29. Obama is feelin' the Bern. No doubt about it.

But for how long?

If Hillary is the nominee, will he still feel it? I doubt it.

[radhika]

20. The USA Ethos is one of the cheapest, meanest-spirited of developed nations...

Seriously, it hurts to read that our predator class still hounds the disabled. Bad enough drowning our healthy grads with debilitating debt, eroding their ability to raise families and own house.

And every little 'grace' granted is treated with a Big Whoop!

Sorry to be so grumpy, but I'm getting real sick and tired of the USA.

[1StrongBlackMan]

21. That seems fair, since ...

proprietary schools have, specifically, targeted persons with disabilities (especially, cognitive disorders) for enrollment.

[YOHABLO]

22. Why shouldn't student loan debt be forgiven through bankruptcy just like the rich folks do?

[mountain grammy]

24. This is so wonderful.

Thank you President Obama

[yallerdawg]

25. My wife took student loans for Fine Arts degree...

and became a self-employed artist and gallery owner.

Then diagnosed with breast cancer, four surgeries, chemo, radiation. Developed a degenerative joint disease and became 100% SSI disabled.

Under Obama administration - after three years reporting zero income - her student loan debt over $60,000 was discharged permanently.

Only person I know who ever beat the student loan people!

Thank you, President Obama!

Student loan people will be at my funeral - just to be sure...

[Ruby the Liberal]

27. I follow this stuff very close - as do many on DU

where we normally headline things like this in multiple forums no less - and completely missed this.

Glad they are being proactive. Wish I hadn't gone into debt on my house to pay off my student loans a few years ago.