Some federal student loan borrowers will have their debts paid off

The US Department of Education announced that federal student loans would be canceled for 323,000 Americans (Photo by Tim Gouw on Unsplash)

NATIONAL LEVEL – The US Department of Education (DoE) has announced that more than 323,000 federal student loan borrowers will have their debt paid off.

In an August 19 press release, the DoE announced that borrowers deemed to be totally and permanently disabled (PDT) will automatically have their loans canceled, which will amount to more than $ 5.8 billion.

Borrowers were identified through matching data by the Social Security Administration (SSA), starting each quarter in September.

In addition, these borrowers will not be asked to provide information regarding their income (an indefinite extension of the policy from March 2021) and the DoE has committed to continuing the elimination of a three-year monitoring period. which is currently required by regulation. This last piece will be in the news in October.

Current regulatory data matches that of the US Department of Veterans Affairs (VA), but does not match the data through the SSA. The DoE notes that this represents only half of the borrowers eligible for TPD to receive the discharge.

Borrowers who are deemed eligible will receive notice by year end regarding their discharge approvals under the new policy.

“We [the DoE] serve students, educators and families across the country to ensure that educational opportunities are accessible to all, ”said US Secretary of Education Miguel Cardona. “We have heard loud and clear from borrowers with disabilities and advocates of the need for this change and we are delighted to act on it. “

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