US Federal Student Debt Canceled For Disabled Borrowers Voice of America
Total and permanent disability student loan borrowers in the United States will have their debt paid off, the United States Department of Education (DoED) said.
“Borrowers with total and permanent disabilities should focus on their well-being, not putting their health on the line to submit income information during the COVID-19 emergency,” the secretary said. Education, Miguel Cardona, in a press release.
“Waiving these requirements will ensure that no borrower who is totally and permanently disabled is at risk of having to repay their loans simply because they have not been able to. submit documents. ”
Equality for U.S. Students with Disabilities
Reasonable accommodation has been available for students in the United States since the passage of the Americans with Disabilities Act in 1990
The remission will reach more than 230,000 borrowers. Debt relief applies to federal student loan borrowers who are “totally and permanently disabled,” The DoED explained.
An example of borrowers who will be relieved by this action are veterans who have taken out federal student loans and who have been deemed invalid by the US Veterans Administration. There is total and permanent disability if a person can no longer work due to illness or injury.
Of the 230,000, more than 41,000 will be reimbursed for payments made during the COVID-19 pandemic. In addition, they will not be required to submit income documents for this period, the statement said.
According to federal regulations, federal loan borrowers who receive a debt discharge are “subject to a three-year monitoring period,” which means they must provide employment and income information to the department.
But during the COVID-19 pandemic, the DoED waives this employment and income requirement for the other 190,000 borrowers who remain in a surveillance period.
“These changes will ensure that no borrower is at risk of having their loans reinstated – meaning they would have to pay off their debt – for not providing income information during the COVID-19 emergency,” said the DoED in a press release Monday.
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Income-related forgiveness after school
Some borrowers who earn more than federal thresholds or who do not meet other criteria will have their loans reinstated after the pandemic, the DoED said.
The DoED will not require borrowers who have received a debt discharge due to total and permanent disability to submit income documents for the duration of the COVID-19 emergency. Debt relief is retroactive to March 13, 2020.
The the ministry said this action is in addition to “the suspension of interest, payments and collection activities on the vast majority of federal student loans until at least September 30, 2021”.