How to qualify for $7 billion in student loan forgiveness if you have a disability
Here’s how to qualify for $7 billion in student loan forgiveness if you have a disability.
Here’s what you need to know — and what it means for your student loans.
President Joe Biden has canceled over $17 billion in student loans. (Biden is still considering large-scale student loan cancellation). This includes a new announcement that $7 billion in student loans have now been forgiven for 350,000 student borrowers with total and permanent disabilities. Here’s how you can qualify.
How to Get That Student Loan Forgiveness
Beginning with the Obama administration, student borrowers with total and permanent disabilities could have their student loan forgiven through a discharge. However, the biggest hurdle for most student borrowers was completing cumbersome paperwork. Since becoming president, Biden has reformed student loan relief. This has included removing administrative barriers so that student borrowers can more easily access student loan forgiveness. (Biden removed student loan forgiveness from his annual budget.) For example, during the Covid-19 pandemic, US Secretary of Education Miguel Cardona waived the requirement to show proof of income. Previously, student borrowers had to demonstrate that their income did not exceed the poverty line during a three-year follow-up period. The U.S. Department of Education has committed to working with the U.S. Social Security Administration and the U.S. Department of Veterans Affairs to use data matching to automatically identify student borrowers who are eligible for relief. student loans. This will help streamline the process to help student borrowers access student loan forgiveness. (Cancelling a student loan may sound different than you think).
How to Apply for Student Loan Forgiveness for Total and Permanent Disability Release
There are three ways to qualify for a total and permanent disability release:
- Veterans: you have a service-related disability that is 100% disabling or you are disabled based on an individual unemployability rating.
- Social Security Disability: you are receiving Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) benefits.
- Doctor’s certificate: A physician can certify that you cannot engage in any “substantial gainful occupation” because of a medically ascertainable physical or mental impairment likely to result in death, which has lasted for a continuous period of at least 60 months, or is expected to last for a continuous period of at least 60 months. (Student loan cancellation and student loan payment suspension are confusing. Here’s what to know).
To apply for student loan forgiveness, submit a application and any proof of your total and permanent disability. If the Department of Education contacts you directly based on information received from the Social Security Administration or the US Department of Veterans Affairs, you are not required to provide documentation showing that you are totally and permanently disabled. Currently, federal student loan payments are suspended until August 31, 2022. However, once student loan payments restart, you will no longer have to pay federal student loans while your application for loan forgiveness is reviewed. student. (Here’s who won’t qualify for $6.2 billion in student loan forgiveness).
If you don’t qualify for this student loan forgiveness, don’t panic. There are many student loan repayment options. Here are some of the most popular ways to save money: