GAO Report Uncovers Failure to Inform Students of Debt Discharge: What You Need to Know
The Government Accountability Office (GAO) has recently published a report highlighting the failure of the Department of Education (ED) to inform thousands of borrowers of their eligibility for debt discharge. This important news impacts both current and former college students, as well as parents who took out loans on their behalf. In this article, we will explore what the report revealed, what it means for borrowers, and what steps they can take to better understand their options.
The Details of the Report
The GAO report found that from 2015 to 2019, approximately 45,000 borrowers who were eligible for debt discharge due to a permanent disability were not informed by the ED. Additionally, the report found that those borrowers who did apply for debt relief faced significant delays and obstacles in the application process. Shockingly, the report even found cases where borrowers passed away while waiting for their applications to be processed.
What It Means for Borrowers
If you or a loved one is one of the thousands of borrowers impacted by the ED’s failure to inform borrowers of their eligibility for debt discharge, it is important to understand what options are available to you. Borrowers who are eligible for debt discharge due to a permanent disability can have their student loan debt forgiven entirely. This can offer significant relief for borrowers struggling to repay their loans, especially as the ongoing COVID-19 pandemic continues to impact the economy.
What You Can Do
If you believe you may be eligible for debt discharge due to a permanent disability, the best course of action is to contact your loan servicer to discuss your options. However, given the ED’s history of poor communication and delays, it is also important to be persistent in following up on your application. Documentation and proof of eligibility will be required, so be sure to gather all relevant documents and have them ready to submit as soon as possible.
Conclusion
The GAO report’s findings shed light on an alarming situation that has impacted thousands of borrowers. It is important for borrowers to understand their options and to take action if they believe they may be eligible for debt discharge. By being persistent and taking the necessary steps to apply for relief, borrowers can potentially have a significant amount of their student loan debt forgiven and regain control of their financial futures.
