Under current law federal student loans which are forgiven on the basis of permanent and total disability are taxed as income. Consequently, borrowers are trading in debt to a lender for debt to the IRS which can have far greater consequences than defaulting on student loans.
Disabled individuals must spend months going through a rigorous screening process in order to get their loans forgiven on the basis of permanent and total disability. To expect the disabled to pay a breathtaking sum in taxes when they cannot repay their student loans is contradictory and should be changed immediately.
Debt should not be traded in for different debt.