Biden Administration Cancels Severely Disabled Student Loan Debt

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On Thursday, the Biden administration announced they will be writing off student loan debt for more than 300,000 Americans with severe disabilities who are unable to earn significant income.

The US Department of Education says the administration’s move will result in the cancellation of over $ 5.8 billion in student loan debt.

The federal government is currently offering student loan debt relief for persons with permanent disabilities. However, they do require these people to present their disability documents and go through a three-year follow-up period to prove that they are receiving little income.

This move by the Biden administration will end a three-year monitoring period and provide automatic assistance to individuals already identified as disabled by the Social Security Administration.

Beginning in September, officials say the Department of Education will begin clearing student loan arrears for approximately 323,000 Americans who have been identified as disabled by the Social Security Administration.

These borrowers will be notified as soon as they are approved for Student Loan Benefit and the move should be completed by the end of the year.

In addition, the cancellation of the three-year monitoring period is expected to be set during the federal rule-making process, which is due to begin in October.

Meanwhile, President Biden has asked the Department of Education and Justice to investigate the legality of the massive cancellation of student loan debt. Education Minister Miguel Cardona says these negotiations are still ongoing.



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