Release: Automatic Total and Permanent Disability Discharges
August 19, 2021 at 4:34 am
On August 19, 2021, the U.S. Department of Education (USDE) announced that more than 323,000 borrowers who have a total and permanent disability (TPD) will receive $5.8 billion in automatic student loan discharges due to a new regulation. The change applies to borrowers who are identified through an existing data match with the Social Security Administration (SSA). The USDE also said that it indefinitely extended the policy announced in March to stop asking these borrowers to provide information on their earnings and will pursue the elimination of the three-year monitoring period required under current regulations during the negotiated rulemaking that will begin in October.
More information from USDE:
https://www.ed.gov/news/press-releases/over-323000-federal-student-loan-borrowers-receive-58-billion-automatic-total-and-permanent-disability-discharges