Obama Administration Forgiving Student Loans Of Nearly 400,000 People

The Obama administration has made an announcement on Tuesday that will make it easier for hundreds of thousands of student loan borrowers to have their loans discharged.  “The Department of Education will send letters to 387,000 people they’ve identified as being eligible for a total and permanent disability discharge, a designation that allows federal student loan borrowers who can’t work because of a disability to have their loans forgiven.”  There were many student borrowers in default who were in danger of having their cash refund or Social Security checks garnished.  Disability advocates are praising the administration’s move and arguing that it should go “one step further by automatically stopping collections and garnishment on borrowers the government identified as eligible for a disability discharge.”

See Jillian Berman, Why Obama is forgiving the student loans of nearly 400,000 people, Market Watch, April 13, 2016.