517,000 student loan borrowers with disabilities need to pay off their debts, according to bipartisan lawmakers



college graduation


  • Six bipartisan senators called for the Education Section. Cardona forgives student debt of 512,000 borrowers with disabilities.

  • They also asked Cardona to drop the three-year observation period required to forgive the debt.

  • Individuals with complete or permanent disabilities are eligible for student debt forgiveness, but the process is difficult to navigate.

  • See more stories on the Insider business page

Higher Education Act allows borrowers with permanent disabilities to forgive their student loans, but the process is lengthy and complex. Six bipartisan lawmakers want to change that.

On August 4, Senators Chris Koons, Tammy Duckworth, Rob Portman and Angus King, along with representatives Ron Kind and Brian Fitzpatrick, wrote letter To Education Minister Miguel Cardone, requesting the fast payment of student loans for 517,000 SSA-designated borrowers with full and permanent disabilities (TPD).

The Higher Education Act of 1965 allows TPD borrowers to forgive loans, but paperwork and a three-year monitoring period complicate the process for eligible borrowers, and most will never get the debt relief they deserve.

“So we continue to spearhead a bipartisan, bicameral effort to ensure that Americans no longer face costly delays or bureaucratic barriers to accessing the benefits they are legally entitled to,” lawmakers wrote.

Established Under President Barack Obama, anyone who has been declared disabled by a doctor, the Social Security Administration, or the Department of Veterans Affairs is eligible for a federal student debt waiver with a requirement to submit documentation within a three-year monitoring period to ensure that their income does not exceed the poverty line.

In March Cardona refused this is a requirement for 230,000 borrowers with disabilities for the duration of the pandemic, stating that at the time it “ensures that no borrower with a complete and permanent disability risks paying off their loans simply because they cannot provide paperwork.”

Bipartisan lawmakers want the monitoring period further canceled and have asked the Department of Education to issue a final rule as soon as possible that provides for automatic forgiveness of student loans for those who are recognized as disabled by the SSA. They want a response from Cardona by the end of this month.

Insider earlier reported about the struggle of borrowers with disabilities in getting the assistance they deserve. Bethany Lilly, director of revenue policy at The Arc, a disability advocacy organization, told Insider that the department has “very confusing and illogical standards that really hurt beneficiaries,” referring to borrowers with disabilities.

Although President Joe Biden steps taken to ease the plight of certain groups of borrowers during the pandemic, he recently said extending the pause between payments until January is “final expansion, “means that borrowers will have to resume payments regardless of their financial situation. The bipartisan group, along with other democratsinsist on continued relief.

“The Biden administration’s decision to extend the pause in student loan payments has brought immediate relief to millions of needy families and borrowers,” said Massachusetts Senator Elizabeth Warren. wrote on Twitter. “Now the president should use the powers he has and forever #CancelStudentDebt… “

Do you have a story to share about student debt or worries about renewing student debt payments? Contact Ayelet Sheffy at asheffey@insider.com.

Read the original article on Business Insider


Source link