President Donald Trump has signed a new executive order that would forgive student loan debts of thousands of totally and permanently disabled veterans.
The new order signed last week would significantly streamline the process to erase the student loans through Total and Permanent Disability (TPD) Discharge process.
Currently, 42.2 million Americans are repaying federal student loans for a total sum of nearly $1.5 trillion, the largest volume of debt after home loans.
Nearly 25,000 eligible veterans, who were identified through the Department of Education established a data matching process with the Veteran Affairs will benefit under the new initiative.
“Supporting and caring for those who have sacrificed much in service to our country is a priority for President Trump and the entire Administration,” said Secretary Besty DeVos.
“We will continue to prioritize the needs of our nation’s veterans and provide them the help and support they have earned and deserve.”
In last more than a year, the TPD discharge process has provided more than $650 million in student loan relief to more than 22,000 eligible veterans.
Those veterans who don’t want their loans forgiven have been given the right to opt-out within 60 days of notification of their eligibility.
Recent legislations introduced by Bernie Sanders and Elizabeth Warren are also seeking to fully or partially forgive student loan debts held by millions of Americans.
Senator Warren introduced bicameral Student Loan Debt Relief Act to forgive loans of up to $50,000 for those whose household gross income is less than $100,000 by using already available data on household gross income and pending student loan debt.
While Sanders introduced a bill that would completely eliminate student debt by imposing a tax on Wall Street and make two and four-year public and tribal colleges and universities tuition-free and debt-free.