Today President Trump signed an executive order cancelling student loan debt for disabled veterans. The order “forgives all student loan debt for any permanently disabled U.S. military veterans” reported Fox News. After speaking at the American Veterans National Convention in Louisville, Kentucky today, Trump signed the document. “The debt of these disabled veterans will be completely erased…That’s hundreds of millions of dollars of student loans debt for our disabled veterans that will be completely erased” the President said.
According to Fox News, “The memo Trump signed directs the government to develop an ‘expedited’ process so veterans can have their federal student loan debt discharged ‘with minimal burdens.” Reportedly, only have of the roughly 50,000 disabled veterans who qualify for student loan debt forgiveness actually receive the benefit because of a burdensome application process.
Currently, under a program called Total and Permanent Disability Discharge, or TPD, veterans can have their debt forgiven if they have a “VA-service-connected disability rating of 100 percent.” However, “only about 20 percent of the eligible” veterans take advantage because of “the complicated nature of the application and other factors.”
Fox News reported that the reprieve for veterans comes just days after “the administration hired a longtime student loan industry executive to be the federal government’s top watchdog for the student loan market.” In a job designed to protect student loan borrowers “from poor practices,” Robert Cameron will “serve as the Consumer Financial Protection Bureau’s new student loan ombudsman, the bureau said Friday.”