New Automatic Discharges for Disabled Borrowers with Student Loan Debt
New automatic discharges for disabled borrowers with student loan debt
The Biden Administration recently announced that they would make total and permanent disability (TPD) discharges of federal student loans automatic for certain borrowers. This new automatic relief will apply to people who are receiving SSDI/SSI benefits and also have outstanding federal student loans. Eligibility is determined and identified through an existing data match between the Department of Education and the Social Security Administration. The Biden Administration also announced that they are looking into eliminating the 3-year-post-discharge monitoring period.
Timeline of New Discharges:
September 2021 - The Department of Education will begin to review and identify eligible disabled borrowers.
October 2021 - Eligible borrowers will receive letters from the Department of Education notifying them that they qualify for a discharge.
December 2021 - Those who are eligible should begin to receive TPD discharges of their federal student loans by the end of 2021.
If you believe you may qualify to receive a TPD discharge and have questions please contact your local LawNY office.
For more information, see: https://www.ed.gov/news/press-releases/over-323000-federal-student-loan…
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Last Reviewed: September 2, 2021