More Than 323,000 Federal Student Loan Borrowers with Disabilities to Get $5.8 Billion

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Student Loan Debt 1160848 1280The U.S. Department of Education announced that over 323,000 federal student loan borrowers with a total and permanent disability (TPD) will get more than $5.8 billion in automatic student loan discharges. An existing data match with the Social Security Administration (SSA) will find such borrowers to apply these changes to their loans, according to the Department.

This change starts in September during the Department's next quarterly data match with SSA. With this TPD move, the Biden administration has approved about $8.7 billion in student loan discharges for around 455,000 borrowers.

"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," said U.S. Secretary of Education Dr. Miguel Cardona. "This change reduces red tape with the aim of making processes as simple as possible for borrowers who need support."

The Department will also extend indefinitely a policy introduced in March that stops asking borrowers to share earning information. If and when borrowers did not respond to the ask, their loans would get reinstated. Beginning in October, the Department will additionally work to get rid of a three-year monitoring period that regulations currently mandate.