Biden Will Erase $5.8 Billion In Debt For 300,000 Disabled Students
The Biden administration announced it will relieve student loans for 323,000 permanently disabled people whose incomes are affected by their disabilities.
The Education Department reports the move will cancel $5.8 billion in debt, Biden has also canceled up to $1.5 billion in student debt for victims of scam colleges such as ITT Technical Institute. The Education Department says the charge will apply to borrowers identified through an existing data match with the Social Security Administration (SSA).
“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 Education Secretary Miguel Cardona.
Cardona further stressed that educational opportunities are available for all students, stating that “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.”
The federal government offers debt relief for students who are “totally and permanently disabled” and have low incomes. However, they must provide proof of their disability and undergo a three-year monitoring period to prove they earn low incomes.
Tens of thousands of people have been dropped from the program and have had their loans reinstated because they failed to submit proof of their earnings. The Department will indefinitely extend the policy to stop asking borrowers to provide information about their earnings and eliminate the three-year monitoring period.
Borrowers will be notified once they have been approved for relief.
“This is a huge moment for hundreds of thousands of borrowers with disabilities who can now move on with their lives and won’t be trapped in a cycle of debt,” said Aaron Ament, president of the National Student Legal Defense Network.
As the nation carries a staggering $1.7 trillion in student debt many Democrats such as Sen. Elizabeth Warren, D-Mass., and Rep. Ayanna Pressley, D-Mass, are urging Biden to cancel up to $50,000 in debt for each person.
Warren says capping the amount of debt relief at $50,000 will do the most amount of good for a maximum amount of individuals trapped under massive debt and give them an easier time buying homes and starting families. Pressly argues canceling $50,000 will ease the disparity in wealth between black and white borrowers.
There is currently a federal moratorium on student loans until at least Sept. 30 due to the pandemic.
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