What does Trump’s student loan forgiveness mean for Veterans?
In late August, President Trump issued an executive order that directed the Department of Education to automatically cancel “every penny” of student loan debt held by Veterans that were deemed totally and permanently disabled. According to the president, this will benefit 25,000 veterans who have an average student loan debt of $30,000. However, a 2008 bill called the Higher Education Opportunity Act (HEOA) already cancels the student loan debt of disabled Veterans.
Begging the question, what does Trump’s executive order actually do?
What the president proposed in his executive order to streamline the process and make it easier for Veterans to discharge their student loans. Trump’s plan calls for the Department of Education to do the bulk of the work and seek out Veterans eligible for discharge rather than force Veterans to appeal to the government for a discharge.
Since the HEOA was passed, thousands of disabled Veterans were unaware that this option existed for them. For this reason, many continued to be burdened by student loans. In part, this is because the process to get student loans discharged for disabled Veterans is a notoriously difficult process.
What do disabled Vets need to qualify for student loan forgiveness?
According to the HEOA, disability determination for Veterans can occur when “a borrower who has been determined by the Secretary of Veterans Affairs to be unemployable due to a service-connected condition and who provides documentation of such determination to the Secretary of Education, shall be considered permanently and totally disabled for the purpose of discharging such borrower’s loans under this subsection, and such borrower shall not be required to present additional documentation for purposes of this subsection.”
In other words, in order to qualify for a disabled veteran student loan discharge, a Veteran must prove they are disabled and incapable of gainful employment. There are three ways to achieve this:
- Submit a doctor’s certification for a certified M.D. educated in the United States.
- Supply a notice of award for Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) that shows your next scheduled disability to review to be within five to seven years from the date of your most recent SSA disability determination.
- Submit VA documentation that shows you are permanently and completely disabled as the result of a service-related injury.
At least 50,000 Veterans are eligible for a loan discharge under the HEOA. However, only half have actually qualified. In some cases, this may be because of a lack of information, others are unaware that the program exists. Still, others may know about the program, but be fuzzy on the details or the steps required to apply.
Trump’s plan will ultimately remove the obstacles many disabled Veterans currently face in their quest for student loan forgiveness.
We are Veterans Helping Veterans
The steps toward total student loan debt forgiveness have long been an option for permanently disabled Veterans. However, because these laws are often convoluted, many may not know that these options exist for them. If you need assistance understanding all of the benefits available to you, contact the VLAP and tell us how we can help.
We’ve got your six.
