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New Education Department Rules Make Student Loan Forgiveness Easier for Disabled Borrowers

By Kenton Koszdin Law Office on November 21, 2012 | In Social Security Disability

The U.S. Department of Education recently approved new rules that make it easier for disabled individuals to discharge their student loan debt. The new rules apply to people who qualify for Social Security disability (SSD) benefits and who also have student loans.

Most federal student loans cannot be discharged in bankruptcy. The loan debt can typically be eliminated only by repayment, death, or disability.

Under the previous rules, the Department of Education had to make a separate disability determination before it would offer student loan forgiveness. This situation left many borrowers in the position of qualifying for SSD benefits, but still being responsible for student loan debt.

The new rules allow the disabled person to rely on the Social Security Administration (SSA)’s determination of disability in order to get his or her federal student loans forgiven, instead of having to go through a second disability determination for student loan forgiveness. The changes go into effect on July 1, 2013. Proponents hope that the changes will not only make student loan forgiveness easier for disabled individuals, but will also speed up the process and streamline the Department of Education’s processes for forgiving student loan debt.

Social Security disability benefits help those whose physical or mental conditions make them unable to work. If you’ve been disabled by an injury or illness and need help seeking benefits, an experienced southern California Social Security disability benefits attorney at the Kenton Koszdin Law Office can help. Call us today at (800) 438-7734 for a free and confidential case evaluation.

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