The Department of Education will waive $ 5.8 billion in loans to some students

    0
    37

    Sarah Tew / CNET

    Student loan debt reached $ 1.7 trillion in 2020, and Democratic leaders have urged President Joe Biden’s administration to cancel many of those loans. The Department of Education says it will cancel billions of student debts, but only for certain people.

    More than 323,000 total and permanent disability (TPD) borrowers will be paying $ 5.8 billion in student loans, according to a news release from the department Thursday. Forgiveness begins in September for those people whose details are already available to the social security authorities.

    Get the CNET Now newsletter

    Spice up your small talk with the latest tech news, products and reviews. Delivered on working days.

    “Today’s move removes a major barrier that has prevented far too many borrowers with disabilities from receiving the full and permanent disability discharge to which they are legally entitled,” Education Minister Miguel Cardona said in a press release on Friday and clear from Disabled borrowers and advocates of the need for this change and we look forward to making it happen. This change is reducing red tape in an effort to make the processes as simple as possible for borrowers in need of assistance. “

    The ministry also says it will no longer ask borrowers for proof of income and will push ahead with the removal of the three-year surveillance period from October.

    In March, the department waived $ 1 billion in student debt for borrowers attending certain for-profit colleges, and an additional $ 500 million in June.

    Biden fought for forgiveness $ 10,000 in student debt per borrower, but he still has to go through. Democratic Senator Chuck Schumer from New York and Elizabeth Warren from Massachusetts are some of the members of Congress calling for a $ 50,000 student loan cut. Biden has extended that double deferral loan for students since he took office. Borrowers will no longer have to pay their student loans until the end of January, and the administration says this will be the final extension.

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here