Disabled Veterans Student Debt Cancelled – White House
While speaking at an AmVets convention in Kentucky on August 21, President Trump signed an Executive Order effectively cancelling disabled veterans student debt. It also clears them from having to pay income tax on the student loans.
“Veterans who have made such enormous sacrifices for our country should not be asked to pay any more, rather it is America who owes our heroes a supreme debt of gratitude.” President Trump
The White House fact sheet on the issue reads in part:
- Today, President Trump signed a presidential memorandum that ensures our totally and permanently disabled veterans obtain the Federal student loan debt discharges they are entitled.
- Only half of the roughly 50,000 disabled veterans who are qualified to have their Federal student loan discharged have received this entitled benefit.
- The process by which our disabled veterans apply for Federal student loan discharges is too burdensome.
- The memorandum directs the Secretaries of Education and Veterans Affairs to develop a new expedited process to help totally and permanently disabled veterans have their Federal student loan debt discharged with minimal burdens.
It was my honor to sign a Presidential Memorandum facilitating the cancellation of student loan debt for 25K of our most severely disabled Veterans. With today’s order, we express the everlasting love & loyalty of a truly grateful Nation. God bless our Vets, & God Bless America! pic.twitter.com/MMMsX3RDQM— Donald J. Trump (@realDonaldTrump) August 22, 2019
Currently, veterans can have their loans erased if they are rated at 100%, a process known as the TPD (Total and Permanent Disability Discharge). But according to Fox, as of July, only about 20% of those eligible have applied for it because the application process itself is too complicated. The Executive Order seeks to fix that issue.
The order also states that those with student loans do not have to pay income tax on those loans.