Permanently disabled veterans and veterans who are unable to work for other reasons are already eligible for federal student loan debt forgiveness. However, 80% of eligible veterans have yet to file the necessary paperwork to have their loans forgiven. By making federal student loan debt forgiveness for eligible veterans automatic, this bill would remove a significant barrier to their abilities to claim debt forgiveness.
The paperwork requirement for eligible permanently disabled veterans and veterans who can’t work for other reasons to claim federal student loan debt forgiveness is reasonable. Automatic forgiveness of this debt without any paperwork could compromise the Dept. of Education’s and VA’s ability to keep track of how many veterans claim this benefit, and in what dollar amounts.