"The Secretary of Education is hereby directed to develop as soon as practical a process consistent with applicable law to facilitate the swift and effective discharge the Federal student loan debt of totally and permanently disabled veterans," Trump said in the memo issued by the White House on Wednesday.
Trump announced the memorandum and the new policy in a speech on Wednesday to the American Veterans (AMVETS) 75th Annual Convention in Louisville in the US state of Kentucky.
The US president said the new policy would cancel the student debt burden "on 25,000 of our most severely disabled veterans."
The Secretaries of Education and Veterans Affairs shall consider all ways to work with the Department of Veterans Affairs so that veterans may be relieved of the "burdensome administrative impediments" to Federal student loan debt discharge, the memorandum said.