San Diego, CA, April 21, 2018 --(PR.com
)-- 10% of student loan borrowers are in default on their student loan payments, almost twice as high as the default rate on credit card debt which sits at 5.9%. Source: American Institute for Economic Research, https://www.aier.org/blog/delinquency-rates-rise-student-loans-credit-cards-and-auto-loans, 04/19/2018
"Student loan debt is a much bigger problem for Americans to deal," stated Wes Hendrickson, who is Certified by the Association for Student Loan Relief and an IAPDA Accredited credit card debt relief program
manager at Golden Financial Services.
As of April 2018, new laws were passed to help permanently disabled veterans get student loan debt discharged. Keep in mind, anyone with their student loans in default can seek relief and could be eligible for student loan forgiveness, but there is a process to go through which is explained later in the article.
The Trump administration announced on Monday; the government will now make it easier for permanently disabled veterans to have their federal student loans "discharged" – meaning, their balances wiped away.
Unfortunately, the process will not happen automatically, but "automatic discharge of student loans" is soon to come. A forgiven debt would be considered "taxable income" in the past. Therefore, the Department of Education could not just forgive someone's student loan debt automatically because that person would receive an unexpected tax bill, but the Tax Overhaul Bill eliminated this obstacle.
The tax overhaul bill signed into law this year put an end to the IRS considering a forgiven student loan debt as taxable income if the discharged student loan debt was due to a disability or death.
The Department of Education will be reviewing their files to select military veterans who are eligible for their student loans to be discharged. The Department of Education will then contact the veterans who qualify to complete a short application.
Paul J Paquin, Golden Financial's CEO, recommends, "Veterans need to get aggressive and contact the Department of Education. Don't wait for them to call you. Now that the law allows veterans to get student loans discharged, be proactive about the situation or you could be waiting forever. Let the Department of Education know that you're aware of the new disabled veteran laws passed by the Trump Administration and would like to have your student loans forgiven and discharged because you're a disabled veteran. Ask the Department of Education to send you the application immediately so that you can sign and return it today."
Besides for veterans, people with severe disabilities are already eligible for student loan forgiveness. The severe disabilities law for a discharge of federal student loans had already passed under the Obama administration, but education on this subject is scarce.
Anyone that is severely disabled and receiving disability payments (does not matter if active military or a veteran), with a medical condition where "Medical Improvement is not expected," could be eligible for student loan debt discharge.
According to the Washington Post, "There are 387,000 matches of students who have a medical condition that is not expected to improve and could be eligible to have their student loan debt discharged, of whom 179,000 were in default on their loans and at risk of having their Social Security benefits garnished."
Contact the Department of Education and let them know if you have a medical condition diagnosed where "Medical Improvement is not expected." You could be eligible to have your student loans discharged.
Everyone with student loan debt in the United States is eligible for student loan forgiveness, but there is a process involved and steps required to be taken.
Golden Financial Services provides step by step instructions on how to get student loan forgiveness and credit card relief