Disabled borrowers earn new forgiveness regulations

Photo from PolicyMic.

Lilly O’Donnell, a Huffington Post blogger, reflected Wednesday on the updated regulations for those with disabilities. Under federal law, graduates who face disabilities they did not have when initially taking out loans may have payments forgiven. This isn’t new legislation, but the process was streamlined just a few weeks ago. Until this month, borrowers would have to jump through hoops, even if they already satisfied the requirements to receive Social Security. Now, the Department of Education will recognize Social Security award letters as proof of disability, which could save borrowers months of waiting–all while making payments.

The reform will go into effect July 1, 2013. Reevaluation of the current process was prompted by an investigation conducted by ProPublic and the Chronicle of Higher Education.

No comments yet.

Leave a Reply