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.
