$5.8 Billion in Relief for Disabled Borrowers

"Student loan borrowers with a total and permanent disability will now have their loans automatically discharged under a new regulation announced Thursday by the Department of Education, continuing the Biden administration’s focus on targeted student debt relief," Inside Higher Ed reports. 

..."The change will go into effect in September after the department’s next quarterly data match with SSA. All discharges are expected to occur by the end of the year.

'If the federal government is already in possession of data that will fast-track borrowers receiving their benefits, figuring out how [the Office of Federal Student Aid] can get access to that information for automatic loan relief must be a top priority,' said Justin Draeger, president and CEO of the National Association of Student Financial Aid Administrators. 'We applaud FSA for operationalizing this benefit and making it permanent. We hope this sets a strong precedent for doing the same for other borrower populations.'”

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Publication Date: 8/20/2021

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