Biden administration announced On Thursday, he will cancel student loan debt for more than 323,000 borrowers who have a permanent serious disability and have limited income as a result.
Why is it important: The move will effectively eliminate about $ 5.8 billion in student debt.
- The Ministry of Education also announced that they will “indefinitely” extend a policy that borrowers will not have to disclose their income.
- Current regulations require borrowers to prove their income in order to stop repaying loans, but thousands of people have loans recovered because they failed to prove their income. AP reports…
Big picture: Prominent Democratic lawmakers continue to urge the administration to write off student debt, including Senate Majority Leader Chuck Schumer, who requested it. Biden cancel student loan debt of up to $ 50,000 per borrower.
What they’re saying: “We have heard clearly and clearly from borrowers with disabilities and advocates about the need for this change, and we are delighted to implement it,” Cardona said in a statement.
- “This change reduces red tape to make it as easy as possible for borrowers who need support,” he continued.
Editor’s Note: This post has been updated to clarify that the moratorium on student loans has been extended until January next year.