On Wednesday, President Donald Trump authorized a memorandum that automatically cancels student loan debts for tens of 1000s of the disabled veterans in the United States. In his speech at AMVETS National Convention located in Kentucky, Trump mentioned that he is particularly proud to announce this gesture that takes an executive action in order to ensure the wounded warriors do not suffer from mountains of the student debt.
Under this move, 25,000+ disabled veterans shall be forgiven the student loan debt. The average loan balanced to be erased shall be around $30,000. Apart from that, the veterans need not pay any federal taxes for the forgiven debt amount, as confirmed by Trump during his speech.
Under the Total & Permanent Disability Discharge option, the disabled veterans are already given access to student loan forgiveness. However, the recently acquired records reveal that the government is continually seeking repayment for $1 Billion student loans acquired by 40,000+ majorly disabled veterans deemed unsuitable to work.
Among them 25,000+ are just in default while 8500 of these veterans have submitted their applications for loan forgiveness. Earlier during the year, Education Department of the U.S. attempted a move to make things easier for the disabled veterans making it easy to register for loan forgiveness by sending eligibility notifications.