Some federal student loan borrowers will have their debts paid off
NATIONAL LEVEL – The US Department of Education (DoE) has announced that more than 323,000 federal student loan borrowers will have their debt paid off.
In an August 19 press release, the DoE announced that borrowers considered to be totally and permanently disabled (PDT) will automatically have their loans canceled, which will amount to more than $ 5.8 billion.
The borrowers were identified through the matching of data by the Social Security Administration (SSA), starting each quarter in September.
In addition, these borrowers will not be asked to provide information regarding their income (an indefinite extension of the policy from March 2021) and the DoE has committed to continuing the elimination of a three-year monitoring period. which is currently required by regulation. This last piece will be in the news in October.
Current regulatory data matches that of the United States Department of Veterans Affairs (VA), but does not match the data through the SSA. The DoE notes that this represents only half of the borrowers eligible for TPD to receive the discharge.
Borrowers who are deemed eligible will receive notice by year end regarding their discharge approvals under the new policy.
“We [the DoE] serve students, educators and families across the country to ensure that educational opportunities are accessible to all, âsaid US Secretary of Education Miguel Cardona. âWe have heard loud and clear from borrowers with disabilities and advocates of the need for this change and we are delighted to act on it. “
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