Monday, November 29

Biden will automatically cancel more than $ 5 billion in student loans

All eligible individuals’ student loans are expected to be paid off by the end of the year.

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The administration of President Joe Biden announced today that it will automatically eliminate federal student loan debt. This measure will benefit 323,000 people.

This financial relief on student loans is to support people who are totally and permanently disabled and not making enough money.

Previously, the support – known as the Total and Permanent Disability (TPD) forgiveness program – was only given if documented proof of disability was presented, in addition to monitoring of the person’s income during three years.

However, as of September, The U.S. Department of Education will begin eliminating the student debt of 323,000 people identified as permanently disabled in their Social Security records, and the three-year income control period is expected to be lifted during a federal rulemaking process that will begin in October.

“This will be an easy process for our borrowers. They won’t have to apply or get bogged down with paperwork, ”said Education Department Secretary Miguel Cardona, according to Newsweek.

Groups, such as the National Student Legal Defense Network, have been lobbying the Department of Education to eliminate the income monitoring period so that the government would simply provide financial support to people that the Social Security Administration already identifies as disabled. permanently.

Thanks to the changes announced today, thousands of people will be prevented from being withdrawn from the program and having their loans reinstated simply by not presenting proof of their income, as has been the case.

Beneficiaries of the program will receive a notification that they have been approved for support. They don’t have to do anything to ask for it. All of these people’s student loans are expected to be paid off by the end of the year.

By this time, the department also plans to eliminate the program’s three-year revenue monitoring period.

On these changes to the program, Aaron Ament, president of the National Student Legal Defense Network, said, “This is a great time for hundreds of thousands of borrowers with disabilities who can now move on with their lives and will not be caught in a debt cycle ”.

It should be noted that there are Democratic politicians, such as Senate Majority Leader Chuck Schumer and Senator Elizabeth Warren of Massachusetts, who have called on President Biden to eliminate $ 50,000 in student debt for all borrowers as a way to reactivate the economy.

–You may also be interested in: How to obtain a report of the debts you have in the United States for FREE

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