Department of Education to forgive $ 5.8 billion student loans

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Some student loan borrowers will receive a gift from the state

Some student loan borrowers will receive a gift from the government.

Sarah Tew / CNET

Student loan debt reached $ 1.7 trillion in 2020, and Democratic leaders pushed for the administration of President Joe Biden to forgive many of these loans. The Ministry of Education says it will cancel billions of student debt, but only for certain individuals.

More than 323,000 full and permanent disability borrowers will have $ 5.8 billion in outstanding student loans. Released as per a Department of Education press release Thursday. Forgiveness begins in September for those individuals whose data already exists with the Social Security Administration.

“Today’s measures remove a major barrier that has prevented too many borrowers with disabilities from obtaining the full and permanent disability statements to which they are entitled by law,” Education Minister Miguel Cardona said in a press release on Friday. “We heard it loud. and educated disabled borrowers and advocates about the need for this change, and we are happy to implement it. This change reduces red tape to make it as easy as possible for borrowers who need support. “

The department also says it will stop asking borrowers for proof of their income and will seek to end the three-year monitoring period starting in October.

In March, the Department of Education forgave $ 1 billion in student debt for borrowers who attended certain commercial colleges, and then another $ 500 million in June.

Biden advocated forgiveness $ 10,000 student debt per borrower, but he still has to see it through. Democrats Senators Chuck Schumer, a Democrat from New York, and Elizabeth Warren, a Democrat from Massachusetts, are among the members of Congress advocating the abolition of $ 50,000 student loans. Biden extended canceling student loan twice since he took office. Borrowers will not have to pay their student loans until the end of January, and the administration says this is the last extension.

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