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US to erase student debt for those with severe disabilities

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Posted at 6:11 AM, Aug 20, 2021
and last updated 2021-08-20 06:11:08-04

The Biden administration says it will automatically erase student loan debt for more than 300,000 Americans with disabilities that leave them unable to earn significant incomes. The Education Department says the move will wipe out more than $5.8 billion in debt, and it marks the start of a broader overhaul of a debt relief program. Loan forgiveness is offered to people with “total and permanent” disabilities, but they have to apply and face a three-year monitoring period to prove they are earning little income. Under the new changes, borrowers identified as permanently disabled will be granted automatic forgiveness and will not have to prove their incomes.