The Biden administration on Thursday said it will discharge more than $5.8 billion in student loans, a move that aims to help ease the …
The Biden administration on Thursday said it will discharge more than $5.8 billion in student loans, a move that aims to help ease the financial burden on hundreds of thousands of borrowers who have permanent disabilities. According to the announcement by the Department of Education, those classified as totally and permanently disabled (TPD) by the Social Security Administration (SSA) will no longer have to file an application for student loan debt relief. Instead, the department will automatically erase loans for borrowers with TPDs by matching their records with the SSA database every quarter, starting from September. Established in 1965, the federal TPD Discharge program is designed to relieve Americans who are no longer able to work because of severe disabilities from repaying their federal student loans. Until now, borrowers eligible under the program had to apply for a TPD discharge.
