Biden To Automatically Cancel $5.8 Billion In Student Loans For Over 300,000 Disabled Borrowers

The Biden administration announced on Thursday that it will be automatically wiping out the federal student loan debt for 323,000 borrowers.

The administration will be cancelling borrowers’ federal student loan debt through the Total and Permanent Disability (TPD) discharge program. The TPD Discharge program allows student loan borrowers who are unable to maintain substantial, gainful employment due to a physical or psychological medical impairment to get their federal student loans cancelled. However, to get student loans forgiven under the program, disabled student loan borrowers must submit a formal application, which can be challenging for those facing serious health issues, and many borrowers may not even realize that they qualify.

The move follows additional efforts by the Biden administration to expand federal student loan forgiveness under existing programs, including recently cancelling $500 million in federal student loans through the Borrower Defense to Repayment program. These efforts are consistent with the Biden administration’s stated goal of providing “targeted” student loan forgiveness.

Re: Biden To Automatically Cancel $5.8 Billion In Student Loans For Over 300,000 Disabled Borrowers

Biden To Automatically Cancel $5.8 Billion In Student Loans For Over 300,000 Disabled Borrowers

Ugh this is a hard one. I don't necessarily agree with student loan forgiveness but I understand the reasoning behind why they would do it for someone disabled.but what is this address $500 million they mention? Who is included in that?