The Biden Administration is Taking Steps To Initiate Additional Student Loan Relief This Week
The Biden administration this week is taking steps to provide additional student loan relief that could impact hundreds of thousands of borrowers. But student loan borrowers and advocates say it’s not enough.
Today, the U.S. Department of Administration announced that it would be easing burdensome bureaucratic requirements for student loan borrowers who have had their student loans forgiven due to a medical disability. The Total and Permanent Disability (TPD) Discharge program allows student loan borrowers who are unable to maintain substantial, gainful employment due to a medical impairment to get their student loans forgiven.
However, to keep their student loans in a discharged status, most TPD borrowers must submit ongoing annual paperwork for three years following their discharge to certify their status and employment earnings (if any). Failure to respond to the Department of Education’s inquiries can result in the discharged loans being reinstated. The vast majority of student loan disability discharges that were reversed were due to a disabled borrower’s failure to respond and submit the required paperwork.
