LOUISVILLE, Ky. (AP) – Hundreds of millions of dollars worth of federal student debt contracted by tens of thousands of disabled veterans will be wiped out under a directive signed Wednesday by the president Donald Trump.
Trump has ordered the Department of Education "to eliminate every penny of federal student debt" owed by totally disabled veterans and permanently disabled.
Trump said that they would not be required to pay the federal income tax debt canceled and called on states to waive the tax on their loans.
America, he said, owes its heroes "a supreme debt of gratitude."
Trump's announcement at the AMVETS National Convention in Louisville drew loud applause from the crowd of more than 2,500 veterans. He signed the directive after speaking at the rally.
Only about half of the approximately 50,000 disabled veterans who are entitled to the cancellation of their federal student debt have received the allowance, and the administration assigns them an application process. " tedious".
The document calls on the government to put in place an expedited process so that veterans can pay their debt "with minimal burden."
The action will eliminate an average of $ 30,000 of debt from over 25,000 eligible veterans, said Trump, calling them "incredible people" who have made "the ultimate sacrifice, in many ways, for our country" .
"He's gone forever," said Trump.
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The 10 most indebted states in the US
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1. California
California has the highest debt-to-income ratio in the country. Golden State residents earn about $ 28,000 a year on average, according to data from the US Census Bureau. The New York Federal Reserve shows that Californians have a balance of $ 65,740 per capita. This gives Californians a debt / income ratio of 2.34 on average. Like many other states, most of California's debt is locked in their mortgages. Californians owe about $ 51,190 per capita on their mortgages.
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2. Hawaii
Hawaii comes second with a debt-to-income ratio of 2.1. On average, Hawaiians earn a little more than the residents of Golden State. The median income in Hawaii is $ 31,905, compared to $ 28,068 in California. Residents of Hawaii also have slightly more debt per capita than California residents: $ 67,010 to $ 65,740. Hawaiians have the second highest proportion of mortgage debt. In total, $ 51,770 out of a total debt of $ 67,010 per capita of Hawaiians is due on mortgages. This means that 77% of the debt per capita is a mortgage debt.
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3. Virginia
Virginia comes in third with a debt-to-income ratio just below 2. The average Virginian earns about $ 31,557 and has a debt of $ 62,520. One of the reasons why lenders can feel safe when they lend to Virginians, which allows them to have a high debt-to-income ratio, is their low delinquency rate. In Virginia, only 1.27% of mortgage debt is overdue by at least 90 days. It is the 13th lowest rate in the country. Virginia also has a relatively high proportion of student loan debt (7.76%).
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4. Colorado
6.85% of Colorado's total debt is tied to auto debt. This is the second highest rate among the top 10. However, it is slightly lower than the national average of 9.57%. Overall, there is not much separation between Colorado and Virginia: Colorado's debt-to-income ratio is 1.96. The median income in Colorado is $ 31,664 and the debt per capita is $ 62,200.
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5. Utah
Like the rest of the top 10, residents of Utah have the vast majority of their mortgage-related debt. The people of Utah have a debt of $ 52,150 per capita, $ 38,240 of which is mortgage debt. The state also has one of the lowest delinquency rates in terms of mortgage debt. Only 1.05% of mortgage debt is overdue for 90 days in Utah. Again, this may partly explain why lenders are so willing to lend to Utahans in search of mortgages.
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6. Washington, D.C.
Nearly 15% of all debts held in the capital of the nation are due to student loans. All this higher education can be paid, however. D.C. has the highest median income in the country and over half of the population over 25 has at least a bachelor's degree. In fact, there are more people over the age of 25 with a post-graduate degree (32.3%) than those with a bachelor's degree (23.8%). The capital also has the lowest percentage of the country's debt related to auto loans (3.35%), likely due to accessible public transportation available in the region.
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7. Oregon
Oregon has a debt-to-income ratio of 1.89. On average, Oregon earns less than many other top-10 states. The median income in Beaver State is $ 26,188, according to the US Census Bureau. Oregon also has the lowest per capita debt in the top 10 at $ 49,550 per capita. For the most part, Oregon has chosen to go into debt to buy a home. More than 72% of the total debt is held in mortgages. Oregon is struggling to pay off credit card debt. Just over 7% of all credit card debts in the state are overdue. One way to eliminate credit card debt is to use a credit card with balance transfer. With a balance transfer credit card, new users typically have limited time to make interest-free payments.
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8. Washington
Washington, neighboring northwestern Oregon, ranks eighth for the highest debt-to-income ratio. The state holds the third-lowest percentage of debt related to student loans (6.29%), but the third-lowest percentage of debt related to mortgages (75.35%). Washingtonians also tend to be among the most responsible debt holders in the country. They are above average for delinquency rates for all types of debt and rank in the top 10 for the lowest rates of delinquent loans and credit cards.
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9. Massachusetts
On average, Massachusetts residents earn about $ 32,352 a year and have a debt of about $ 59,820 per capita. This corresponds to a debt-to-income ratio of 1.84. Again, like other states, the majority of this debt is mortgage debt. About 72% of the debt per capita in the state of the Bay is mortgage debt. State residents do not contract as much credit card debt as other states. About 5.45% of per capita income is related to credit card debt.
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10. Maryland
The Old Line State completes our top 10 states with the highest debt-to-income ratios. Maryland residents are among the wealthiest in the country, with an average individual income of $ 36,316. In terms of debt, Maryland residents have a per capita debt of $ 67,020, which means their debt ratio is 1.84.
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Trump also used his appearance to highlight the steps taken by the administration to strengthen the military, including increased spending and new equipment. He also spoke about the administration's commitment to veterans, including helping them access health care, reducing opioid addiction and minimizing suicides among people who do not care. were more in uniform.
Trump said the administration was "determined to do everything in its power" to end suicide among veterans. About 20 veterans end their lives every day.
Trump promoted the drug Spravato, a new Johnson & Johnson nasal spray approved for the treatment of treatment-resistant depression. He added that he had asked his administration to get as much medication as possible from New Jersey's consumer products company.
Trump said that Johnson & Johnson had done so well and "earned so much money" that they "should give it to us for free".
Johnson & Johnson said in a statement that it was discussing with the Department of Veterans Affairs and other payers to ensure "affordable access" to Spravato for its use in patients suffering from treatment-resistant depression. The drug is sold to the federal government at reduced prices, the company said.
After the speech, Trump went to a nearby hotel to hold a fundraiser for Republican Governor Matt Bevin, who wants to be re-elected against Attorney General of the Democratic State, Andy Beshear, in the part of the next November election.
Bevin, who plays with Trump for a second term, quickly boarded Air Force One after landing in Louisville to be photographed as he accompanied Trump aboard the presidential plane.
Trump recently promised to hold a campaign rally for Bevin and said Wednesday that Bevin "was a very great governor". Trump's reelection campaign has not announced a date for a Kentucky rally.
Trump also spoke with enthusiasm for Senate Majority Leader Mitch McConnell, praising Kentucky Republican "outstanding work" for bringing the GOP-controlled Senate to confirm many Conservative candidates for the federal judiciary.
McConnell wants to be re-elected for a seventh term in the Senate next year and faces a daunting challenge from Democrat Amy McGrath.
Trump said he would return to Kentucky to beef up both candidates.
"I'll be campaigning here for Mitch and I'll be campaigning for Matt, and we'll get them both back," Trump said.
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Associated Press editors Laurie Kellman, Washington, and Linda A. Johnson, AP Medical Writer, Trenton, NJ, contributed to this report.
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