Ministry of Education cancels student debt for people with disabilities
The Education Department announced Monday that it will write off the student loan debt of more than 40,000 totally and permanently incapacitated borrowers.
In a press release, the ministry said more than 41,000 people whose student loan payments have been reinstated will recover their previous disability releases and that any payments made during the COVID-19 pandemic will be refunded to them. Another 190,000 borrowers who are still in a 3-year discharge supervision period will not be asked to submit their income documentation.
“Borrowers with total and permanent disabilities should focus on their well-being and not put their health on the line to submit income information during the COVID-19 emergency,” the Education Secretary said . Miguel CardonaMiguel CardonaPavlich: The militarization of the DOJ by the Democrats is back. said in the press release. “Waiving these requirements will ensure that no borrower who is totally and permanently disabled is at risk of having to repay their loans simply because they could not submit documents.”
The ministry noted in the statement that the policy dictates that people who receive discharges are required to send compensation documents. If it turns out that their income exceeds a certain limit, their loans will be reinstated.
However, the Education Department pointed to a 2016 Government Accountability Office report which found that almost all of the people whose disability leaves were reinstated did not exceed a certain income but failed to submit requested documents. .
“As of today, the Ministry will not require borrowers who have been granted full and permanent disability release to submit income documents for the duration of the COVID-19 emergency. This change will be retroactive to March 13, 2020, the onset of COVID-19. -19 national emergency, ”the statement said.
“In addition, the ministry will revoke any reinstatement of loan repayment requirements that occurred during this period because the borrower did not submit income information,” the ministry added. “Affected borrowers will not be required to subsequently submit documentation of their income for the period covered by the COVID-19 emergency. server.”