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After the official extension of the student loan moratorium until August 31 by President Joe Biden – who claims that “it will help Americans breathe a little easier as we recover and rebuild a little from the pandemic – it also seems to be returning hundreds of thousands of disabled people. back for loan repayments in good condition.
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The Biden government recently announced that it has canceled $ 7 billion in federal student loan for some 350,000 disabled borrowers through a data exchange initiative between the Social Security Administration (SSA) and the Department of Education.
By sharing the information of individuals receiving SSA benefits, certification for the Total and Permanent Disability Exemption (TPD) program could be confirmed and student loans can be automatically canceled.
The TPD waiver is when you are required to pay William D. Ford Federal Direct Loan (Direct Loan) loans, Federal Family Education Loan (FFEL) loans, Federal Perkins Loan (Perkins Loan) loans and The Teacher Training Assistance for College and Higher Education Grant Program (TEACH) service is rejected due to your total and permanent disability.
In a tweet, Federal Student Aid Chief Operating Officer (and five-time undefeated Jeopardy champion!) Richard Cordray wrote: dollars in student loans. “
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In response to the COVID-19 pandemic, most federal student loans and interest rates have been on hold since March 2020. But after a series of layoffs and extensions of federal student loan payments by President Biden and former President Tras supporters called for more than short-term solutions.
While many Republicans and private lenders are pushing for the president to repay federal student loan payments, Democrats and proponents of forgiveness are putting even more pressure on the president to extend payment obligations at least until the end of the year or until the end of the year. student loan balances completely.
The Biden government has announced its intention to use this data-sharing initiative to streamline student loan relief for some disabled borrowers in August 2021. The Department of Education is expected to issue 15,000 to 20,000 TPD first miscarriages each year. In addition to the data exchange initiative, Biden also plans to suspend monitoring of post-employment earnings and review the TPD waiver program disability application process, according to Forbes.
With some 43 million Americans having student loans and the average borrower owing about $ 36,000, writing off a loan would immediately boost the financial health of these individuals and help address racial and economic equality issues. While many are calling for a more comprehensive restructuring of the student loan program, recent TPD efforts are in line with the Biden administration’s stated goal of providing “targeted” student loan forgiveness.
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