We realize it may be a stretch for ordinary people to want to keep up with the comings and goings of the Social Security Administration, but sometimes circumstances permit where someone does want to follow the latest news regarding the agency due to a possible retirement or disability interest. This blog is an ongoing piecemeal of recent stories that have involved Social Security. Some are tidbits and some are important things that should be known in the world of retirement or disability and others are just interesting stories and nothing more.
Student Loan Discharge
Some people who’ve been found disabled by the Social Security Administration are allowed to get their student loan debt discharged if they meet certain requirements, but the 2017 tax bill changed how these discharges are considered for tax purposes, which actually benefits the disabled debtor.
Even before the 2017 tax bill people who were found totally and permanently disabled were allowed to have their student loans discharged, below is the exact language from the U.S. Department of Education.
To qualify for a TPD discharge, you must complete and submit a TPD discharge application, along with documentation showing that you meet our requirements for being considered totally and permanently disabled, to Nelnet, the servicer that assists the U.S. Department of Education with the TPD discharge process.
Unfortunately the definition of totally and permanently disabled can be up for interpretation, so Social Security setup more specific standards. When Social Security finds someone disabled, typically the agency recommends how long it will be before the person found disabled is reviewed to determine if they remain disabled. Anyone who is recommended to be examined five-to-seven years after being found disabled can have their loans discharged. This does not help many people because the review can be recommended well before this, but if they continue to be disabled they can have the loans discharged. A positive aspect of the 2017 tax bill changed how the discharge is considered by the government. Prior to the law, the amount forgiven was considered income, which created huge tax liabilities for these people, but the new law changed this and it is no longer considered income.
Still No Confirmed Commissioner
The last confirmed commissioner Social Security had was Michael Astrue, who was appointed by President George W. Bush, but he left the office in January 2013 at the beginning of President Barack Obama’s second term. After Astrue left Carolyn Colvin served as action commissioner, but she resigned at the beginning of President Donald Trump’s term. Since Astrue left there has been no confirmed commissioner, which has now extended into six years. In previous blog posts we have reported that Trump has named Andrew Saul for consideration as the new commissioner of Social Security, but Saul has yet to be confirmed to the post and Nancy Berryhill effectively remains the acting commissioner of the agency. There is hope that Saul’s nomination will be considered within the coming weeks and months so that Social Security will have its first confirmed commissioner since 2013.
