The United States Department of Education announced on Aug. 19 that it will automatically erase student loans debt for over 323,000 borrowers with severe abilities.
The move will cancel over $5.8 billion of student loans debt for Americans identified as having a total and permanent disability in their Social Security records beginning on September, according to the department.
“Today’s action removes a major barrier that prevented far too many borrowers with disabilities from receiving the total and permanent disability discharges they are entitled to under the law,” U.S. Education Secretary Miguel Cardona said in a statement.
“We’ve heard loud and clear from borrowers with disabilities and advocates about the need for this change and we are excited to follow through on it. This change reduces red tape with the aim of making processes as simple as possible for borrowers who need support,” Cardona further said.
The department also announced that it will no longer require the borrowers with TPD to provide information of their income, extending a policy announced last March.
The department said that it will also try to entirely eliminate the three-year monitoring period required for borrowers with TPD to prove they were earning little income.
Earlier this month, the current administration announced that the moratorium of student loan repayment will last until the end of January 2022.
Americans currently owe around $1.7 trillion in debt.
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