The Biden Administration announced Thursday that they will be erasing student loan debt for more than 300,000 Americans with severe disabilities that cannot earn significant incomes.
The U.S. Department of Education says the Administration’s move will erase more than $5.8 billion in student loan debt.
Currently, the federal government offers student loan debt relief for individuals who are permanently disabled. However, they do require those individuals to submit documentation of their disability and undergo a three-year monitoring period to prove they earn a small income.
This move by the Biden Administration would end the three-year monitoring period and provide automatic relief for individuals who are already identified as permanently disabled by the Social Security Administration.
Beginning in September, officials say the Education Department will start erasing student loan debt for about 323,000 Americans identified as permanently disabled by the Social Security Administration.
Those borrowers will be notified once they have been approved for student loan relief, and the move should be completed by the end of the year.
Additionally, the elimination of the three-year monitoring period is expected to be established during a federal rulemaking process that’s scheduled to begin in October.
Meanwhile, President Biden has asked the Departments of Education and Justice to look into the legality of mass cancellation of student loan debt. Education Secretary Miguel Cardona says those talks are still on-going.
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