New steps to help those with disabilities with student loans

WASHINGTON – The Obama administration is taking steps to help people with disabilities who are struggling to repay their student loans.

The Education Department has streamlined the process for applying for an existing federal loan forgiveness program for people who are permanently disabled.

Letters will be sent next week to about 387,000 people the agency has identified as eligible. Those borrowers hold loans totalling about $7.8 billion.

Under the program, eligible borrowers will have their student loan debt erased. Ted Mitchell, undersecretary of education, says too few borrowers have been taking advantage of the program because they may not know about it or because applying was too complicated.

Borrowers whose loans are forgiven then would not be at risk of having their Social Security income or disability payments seized.