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Covid-19

Biden Cancels Another $5.8B In Student Loan Debt – Do You Qualify?

President Joe Biden, his administration, and the United States Department of Education have worked together to cancel another $5.8B in student loan debt. With such cancellation, around 323,000 federal student loan borrowers with a total and permanent disability (TPD) will see their college debt automatically discharged by the end of 2021.

The average discharged loan amount is $18,000. It is the Biden administration’s most significant loan forgiveness measure. The announcement was made through a press release by the U.S. Education Department. With the latest cancellation of student loan debt, the total amount that the Biden administration has forgiven is now at $8.7 billion for around 455,000 borrowers.

Through the existing data by the Social Security Administration (SSA), the automatic discharge from college debt of the qualified borrowers in the latest cancellation will begin this September. As long as a borrower has an identifiable disability through the SSA and the Department of Veterans Affairs (VA), they are sure to qualify for the debt forgiveness.

If your disability is not yet recorded with the SSA or VA, you can apply here: https://www.disabilitydischarge.com/

To qualify, you must have a physician’s certification. Your doctor must confirm your disability that could result in death or have lasted continuously for at least five years or could last in the next five years so that your application can be approved.

The loans covered by the recent cancellation are those incurred from federal Direct Loans, Federal Family Education Loan Program loans, and/or Perkins loans. TPD borrowers who were likewise part of the Teacher Education Assistance for College and Higher Education (TEACH) Grant Program will no longer have to meet their TEACH grant service obligation.

Credit: nysut.org

Those who do not qualify for this recent student loan forgiveness can apply for additional forbearance. The federal student loan payments are paused until Jan. 31, 2022, because of COVID-19. Once it resumes by February of next year, borrowers who cannot pay their loans may still apply for economic hardship deferment or unemployment deferment. Through such programs, borrowers can get an extended 36 months for their forbearance, Fox 5 Atlanta reported.

Borrowers can also enroll in an income-driven repayment plant. Through this program, borrowers can be limited to their student loan payments in proportion to their income.