The Obama administration plans to forgive $7.7 billion in federal student loan debt for nearly 400,000 permanently disabled Americans. The law states that anyone with a severe disability is eligible to have their federal student loan debt discharged.
Four years ago, the administration took steps to make the process easier by allowing people who are totally and permanently disabled use their Social Security designation to apply for a discharge, but few took advantage of the opportunity. The Department of Education is now taking it upon itself to identify eligible borrowers and guide them through the process to discharge their student loan debt.
Working with the Social Security Administration, the department has been able to identify 387,000 matches in its first review. Approximately 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.
Those Americans with disabilities have the right to student loan debt relief. This week’s announcement further extends President Obama’s Student Aid Bill of Rights, which directs federal agencies to overhaul the way Americans repay student loan debt.
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For borrowers who are struggling with student loan debt, relief options are available. Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. It is important you contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com