The Biden administration is responding to calls to eliminate student loan debt for some, but the benefit will not apply to everyone.
The announcement came Thursday when President Joe Biden’s team said the federal government would automatically cancel student loan debt for more than 300,000 Americans with severe disabilities. This means that with one stroke of the pen, $ 5.8 billion in debt will disappear.
The Biden administration says the Department of Education will oversee these efforts and be part of a broader move to overhaul programs that have been criticized for overly onerous rules.
“We have heard clearly and clearly from borrowers with disabilities and advocates about the need for this change, and we are very pleased to implement it,” Education Minister Miguel Cardona said in a statement.
Basically, the rule change allows the postponement of voluminous documentation that was previously required for debt forgiveness. This opens up the possibility of canceling student loans for people with permanent disabilities.
According to representatives of the Ministry of Education, these debts will begin to be written off in September.
“It will be a smooth process for our borrowers,” Cardona said in a telephone conversation with reporters. “They don’t have to apply or get bogged down in paperwork.”
There will be no more loans by the end of the year.
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