Trump unveils a new 'expedited' process to more easily forgive the federal student loans owed by veterans with disabilities
to stop requiring that disabled veterans fill out that paperwork and instead automatically cancel the debt.
Hill said in an email Wednesday that the agency was changing its position on the automatic loan forgiveness “now that the things we were worried about have been taken care of.” The Republican tax law in 2017 removed any federal tax liability associated with loans canceled through the “total and permanent disability” loan discharge program. Trump on Wednesday noted that veterans wouldn’t face a federal tax bill on the canceled amount. “That is big stuff,” he said.
“We’re still concerned about a tax liability in several states but POTUS has called on them to eliminate that burden,” Hill said in an email on Wednesday. “We’ve also figured out a way for veterans to continue their education post-loan forgiveness. With those things taken care of, we think an opt-out is appropriate.”
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