- Staff Writer
Permanently Disabled Veterans Can Qualify for Student Loan Forgiveness
Answers to Commonly Asked Questions
100% permanently disabled veterans may now have their student loans forgiven. This is due to an executive order President Trump signed in 2019. The order directed the Department of Education to eliminate or forgive all federal student loan debt of disabled veterans.
Can all veterans qualify to have their student loans forgiven?
No. In order to qualify for loan forgiveness veterans must be rated by the VA as completely and permanently disabled. Veterans with a lesser (or no) disability rating should speak with a lawyer to see if they should file for VA disability benefits.
Even veterans with a lesser disability rating may want to speak with a lawyer to see if they can file for an increase.
Do veterans pay taxes on the loan forgiveness?
No. Veterans do not have to pay taxes on the amount of the loans that are forgiven. That’s a big deal for veterans since no one wants a bump in taxable income!
Were veterans able to have their loans forgiven before?
Technically, yes. There was a provision in the Higher Education Act of 1965 and 2008 that allowed for disabled veterans to apply to have their loans forgiven but it was a complicated process and very few veterans actually ended up having their student loans waived.
Politico and Forbes reported that there was an internal Department of Education memo that delayed processing the student loan discharge requests sent in by veterans. In other words – the bureaucratic system was getting in the way of veterans receiving this benefit, which is why only around 3,300 veterans ever received it.
What is the process for getting my student loans forgiven if I am completely and permanently disabled?
It’s really easy. When a veteran receives this rating a letter is sent to the Department of Education who notifies the loan holders that the loans are to be forgiven. It’s worked this way for other disabled veterans but if you have the rating of completely and permanently disabled and have no gotten your loans waived, contact your student loan servicer. There’s also a chance that you don’t have the correct rating to qualify. To find out if you do, speak with a lawyer for FREE by clicking here.
Can I have my student loans forgiven if I receive a completely and permanently disabled rating in the future, or did I have to be rated this way in 2019 when the order was signed?
The expedited student loan forgiveness applies to veterans who receive this rating in the future as well. As long as the law and executive order are not overturned, disabled veterans may receive this benefit. Find out if you qualify for VA disability by scheduling a FREE consultation with our office.