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Obama Announces Student Loan Relief For Disability Beneficiaries

On April 12, 2016, President Obama announced an executive action to notify 387,000 Social Security disability beneficiaries of their possible eligibility to have their outstanding student loan balances discharged.  If you have an outstanding student loan and have a “total and permanent disability” it may be possible for you to have your student loan balance discharged.  The SSA plans to send out notices informing individual borrowers who are receiving disability benefits as to whether they are eligible.  In order to be found eligible, the SSA must consider you to in the category of “Medical Improvement Not Expected.” If the SSA does not find that you are in this category, you have the right to submit additional evidence of your disability to prove that your disability is not expected to improve and then the SSA will determine if you are eligible for the student loan discharge.  Obama’s action was taken as part of implement the Administration’s Student Aid Bill of Rights of 2015.

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