Veterans Notified of Their Right to Discharge Student Loans if New Bill Becomes Law
Despite being one of the most common—and most crippling—forms of debt in the US, student loan debt is one of the few forms of unsecured debt that cannot be discharged in a bankruptcy filing. With more and more Americans going to college and graduate school who are forced to incur hundreds of thousands of dollars in debt, some public officials have begun proposing solutions to help those who are struggling to pay their bills before their career has even begun. One New York congressional representative has proposed a bill that would simplify the process that injured veterans go through to obtain a discharge of their loans.
Total and permanent disability is grounds for loan discharge
There are few ways to discharge federal student loans before they’re fully paid off. Among these select few means of discharge is discharge due to a total and permanent disability. There are three ways by which people can establish that they experienced a total and permanent disability and are entitled to a discharge of their loans:
The individual is a recipient of benefits from Social Security Disability Insurance or Supplemental Security Income
A physician has found that the person has had a total and permanent disability for the past five years, and is likely to continue to have that disability for at least five years more, or
The debtor is a veteran of the armed services who was injured in the line of duty.
Notice to veterans of their right to discharge after a major injury
While SSDI recipients who are totally and permanently disabled receive an automatic notification that they’re entitled to a discharge of their federal loans taken out for school, veterans don’t receive this type of notice. The new law would ensure that every vet who has been ruled totally and permanently disabled after being injured as a servicemember would be notified of their right to federal student loan discharge. Often, this fact isn’t conveyed to veterans, who struggle to keep up with loan payments while living on a fixed income of VA benefits.
If you are having trouble keeping up with debts after a major injury or illness in Maryland, find out your options for dealing with this debt by contacting the knowledgeable and dedicated Germantown consumer debt lawyers at Haeger Law for a consultation, at 888-463-3520.