Biden Admin Unveils Biggest Student Loan Forgiveness Program Yet
The US Department of Education announced student debt forgiveness Thursday totaling $5.8 billion for federal student loan borrowers who are totally and permanently disabled. The loan forgiveness program will affect 323,000 people, making it the largest student loan cancelation of the Biden presidency so far.
The process is automatic. Eligible borrowers will be identified through Social Security Administration data. There will be no application necessary.
"This process is going to be a smooth process for borrowers where they're not going to have to be applying for it, or getting bogged down with paperwork," said Education Secretary Miguel Cardona. "We recognize that these borrowers are eligible and we are moving swiftly to provide relief of $5.8 billion to them."
On Friday, the Education Department also announced that it has retroactively waived interest on loans held by more than 47,000 current and former members of the armed services. The interest rate benefits were accomplished through a data-matching agreement with the U.S. Department of Defense (DOD).
The latest debt relief actions bring total student loan forgiveness under the Biden administration to around $8.7 billion.