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US will erase billions in student loans next month: Here’s who will qualify

The Biden Administration is answering calls to eliminate student loan debt for some, but that benefit won’t be extended to everyone.

The announcement came on Thursday, as President Joe Biden’s team said that the federal government would automatically erase student loan debt for more than 300,000 Americans with severe disabilities. It means that with the stroke of a pen, $5.8 billion in debt will disappear.

The Biden Administration says the Education Department will oversee the effort and will be part of a broader move to overhaul the programs that have been criticized for having overly burdensome rules.

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“We’ve heard loud and clear from borrowers with disabilities and advocates about the need for this change and we are excited to follow through on it,” Education Secretary Miguel Cardona said in a statement.

Mainly, the rule change allows for lengthy documentation, which was previously required to have debts forgiven, to be set aside. It clears the way for those with permanent disabilities to have their student loans eliminated.

Those debts will begin getting erased in September, according to education officials, who say that the effort will take only a few months to implement.

“This is going to be a smooth process for our borrowers,” Cardona said in a call with reporters. “They’re not going to have to be applying for it or getting bogged down by paperwork.”

By the end of the year, the loans will be gone.

Categories: EducationNews