$5.8 Billion of Student Loan Debt Will Be Erased for People with Severe Disabilities

Photo: Imeh Akpanudosen/Getty Images for UCLA

U.S. Secretary of Education Miguel Cardona said the decision removes a “major barrier” that prevented many borrowers with impairments from receiving the total and permanent disability discharges to which they are legally entitled.

“From day one, I’ve stressed that the Department of Education is a service agency,” Cardona said in astatementfrom the Department of Education. “We serve students, educators, and families across the country to ensure that educational opportunity is available to all.”

The move will affect more than 323,000 Americans who are unable to earn a significant income due to their impairment, the department said.

“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 said. “This change reduces red tape with the aim of making processes as simple as possible for borrowers who need support.”

Borrowers who will have their federal debt erased will be identified through an existing data match with the Social Security Administration. The process will begin in September, the department said.

“With this TPD action, the Biden-Harris Administration has now approved approximately $8.7 billion in student loan discharges for roughly 455,000 borrowers,” the Education Department said in their announcement.

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While Thursday’s announcement is promising, President Biden has not yet followed through on hiscampaign promiseto cancel $10,000 of student loans for borrowers.

As of recent estimates, the collective student loan debt in the U.S. amounts to $1.7 trillion, according to theFederal Reserve.

source: people.com