Biden admin cancels student debt for borrowers with severe disabilities

 

• The Biden administration is forgiving the student loans of borrowers with severe disabilities.
• The loans forgiven total more than $5.8 billion.
• The administration has now forgiven around $8.7 billion in loan debt.

The Biden administration announced on Thursday the latest in a series of student loan reprieves forgiving the debt of borrowers with total or permanent disabilities (TPD). 

Over 323,000 borrowers will be covered under the loan discharge, which will total more than $5.8 billion. Borrowers will be identified through existing data supplied to the Social Security Administration. The administration has now forgiven around $8.7 billion in loan debt. 

"Today's action removes a major barrier that prevented far too many borrowers with disabilities from receiving the total and permanent disability discharges they are entitled to under the law," Education Secretary Miguel Cardona said in a press release. 

“We've heard loud and clear from borrowers with disabilities and advocates about the need for this change and we are excited to follow through on it,” Cardona continued. “This change reduces red tape with the aim of making processes as simple as possible for borrowers who need support."

Aaron Ament, president of the National Student Legal Defense Network, told the Associated Press (AP) that Thursday’s announcement is a “huge moment” for borrowers “who can now move on with their lives and won’t be trapped in a cycle of debt.”

The Education department has issued a series of loan discharges in 2021, including forgiving the debt of 92,000 students defrauded by for profit colleges. 

Additionally, due to pandemic burdens, the administration has extended loan forbearance and paused interest on payments through Jan. 31, 2022. 

American borrowers collectively owe 1.7 trillion in student loan debt. 

https://thehill.com/changing-america/enrichment/education/568625-biden-admin-cancels-student-debt-for-borrowers-with