ATTORNEY GENERAL HERRING CALLS FOR AUTOMATIC DISCHARGES OF STUDENT LOANS FOR TOTALLY AND PERMANENTLY DISABLED VETERANS

Attorney General Herring and his colleagues note in their letter to Secretary of Education Betsy DeVos that last year DOE identified more than 42,000 veterans as eligible for student loan relief due to a service-related total and permanent disability. Fewer than 9,000 of those veterans had applied to have their loans discharged by April 2018, however, and more than 25,000 had student loans in default.

The letter calls on Secretary DeVos and DOE to develop a process to automatically discharge the student loans of veterans determined by the Department of Veterans Affairs to be eligible for such relief. While the automatic discharge process is in development, the letter proposes that DOE should halt debt collection efforts targeting disabled veterans and clear their credit reports of any negative reporting related to their student loans. 

"These brave men and women have put everything on the line for our country,” said Attorney General Herring. "Veterans with permanent and total disabilities, who may not have the ability to work anymore, deserve to live their lives without having to worry about student debt. Virginia has one of the largest veteran populations in the country and I will continue to advocate and fight for better consumer protections for them.”

Under federal law, DOE is required to discharge the federal student loans of veterans determined by the Department of Veterans Affairs to be unemployable (or totally and permanently disabled) due to a service-connected condition. Although DOE currently requires disabled veterans to take affirmative steps to apply for a loan discharge, those steps are not required by law.

The attorneys general note that the federal government has taken some steps to make it easier for eligible veterans to secure student loan relief. However, according to their letter, an automatic discharge process that gives individual veterans an opportunity to opt out for personal reasons "would eliminate unnecessary paperwork burdens and ensure that all eligible disabled veterans can receive a discharge.”

The letter supporting automatic student loan discharges for totally and permanently disabled veterans received support from enough attorneys general to become formal policy of the National Association of Attorneys General. This designation is reserved for letters and comments supported by at least 36 attorneys general.

"Proposals for automatic discharges with opt-out rights have bipartisan support in Congress and among leading veterans' advocacy organizations,” the letter states. The veterans groups supporting such proposals have included: Vietnam Veterans for America, Veterans Education Success, The Retired Enlisted Association, High Ground Advocacy, and Ivy League Veterans Council.

The letter closes by urging DOE to "take action to better protect those who once protected the nation. Our veterans deserve nothing less.”

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