This story is evolving.
President Joe Biden canceled another $ 5.8 billion in student loans.
Here’s what you need to know.
Biden made the decision to cancel the student loan for 323,000 student loan borrowers who have total and permanent disability (TPD). The automatic disbursement of the student loan will occur by matching existing data with the US Social Security Administration (SSA) starting next month. As part of this significant student loan forgiveness, the Department of Education will also make the following changes to make it easier to obtain loan forgiveness:
- stop asking these student loan borrowers for their income in order to be eligible for student loan cancellation; and
- to seek the abolition of the three-year period of income monitoring.
“Today’s measures remove a major barrier that has prevented too many borrowers with disabilities from receiving the full and permanent disability benefits to which they are entitled by law,” said US Education Secretary Miguel Cardona. “From the first day I emphasized that the Ministry of Education is a service agency. We serve students, teachers, and families across the country to ensure that education is accessible to everyone. We have heard clearly from disabled borrowers and advocates about the need for this change, and we are delighted to implement it. This change reduces red tape to make it as easy as possible for borrowers who need support. “
What does canceling this student loan mean for student loan borrowers
This new regulation will allow the Biden administration to cancel more student loans by automatically writing off loans for student loan borrowers that have been identified through an administrative matching process and by removing the onerous requirement to fill out a student loan forgiveness application. President Donald Trump has lifted the 2019 application requirement for student loan borrowers who have agreed on an extract from the U.S. Department of Veterans Affairs. However, student loan borrowers who meet the requirements of the US Social Security Administration will now be included. Student loan borrowers will receive notices of their approval of student loan cancellation within a few weeks after consultation with the Department of Education. In such a case, the cancellation of the student loan through automatic disbursement must be completed by the end of the year.
Department of Education Announces Cancellation of Student Loan
The Department of Education will make ongoing changes to the agreed policy making process for the three-year income monitoring period to qualify for automatic student loan forgiveness for total or permanent disability. Here’s how:
- The Department of Education will stop sending automatic requests for information on income, including after the end of the Covid-19 pandemic;
- This expands on existing practice, introduced in March 2021, for the duration of the Covid-19 pandemic; and
- During the agreed rule-making, which begins in October, the Department of Education will propose to abolish the three-year income monitoring period altogether.
Biden Cancels $ 9 Billion Student Loans
Today marks the largest single act of canceling a student loan during Biden’s presidency. Prior to today’s announcement, Biden canceled $ 3 billion in student loans after becoming president. With the cancellation of the student loan today, Biden in his presidency decided to forgive the $ 9 billion student loan. This includes:
- Biden Canceled Student Loans For 455,000 Student Loan Borrowers;
- $ 1.3 billion – student loan cancellation for 41,000 student loan borrowers in March;
- Since March 2021, the Biden administration has also canceled over $ 1.5 billion in student loans through borrower protection pending repayment of nearly 92,000 student loan borrowers.
- Biden renewed his student loan exemption twice, resulting in $ 5 billion in monthly savings for 41 million student loan borrowers.
Biden continued to push for targeted student loan abolition rather than widespread student loan abolition. There is no guarantee that there will be a large-scale student loan cancellation, which means that you must understand your student loan repayment alternatives. Here are some smart ways to pay off student loans and save money:
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