The Department of Education announces relief for student loan Borrowers with total and permanent disabilities during the Emergency Covid-19 March 29, 2021 Contact: Press office, (202) 401-1576, Press @ ed.gov
  • The Department of Education (Department) announced Relief today for Certain Borrowers who have received discharges of student loans due to the total and permanent disability. These changes will not make sure that Borrowers run the risk of reinforcing their loans, which means that they would have to pay their debt, for not providing profit information during the Emergency Covid-19.

    This action will help more than 230,000 Borrowers. More than 41,000 of these Borrowers who had $ 1.3 billion in reincorporated loans will now obtain their downloads, they will have the payments made during the Emergency Covid-19, and will not be asked to send the profit documentation. The other 190,000 Borrowers remaining at their monitoring period that present the documentation of the profits will not be asked. These income monitoring requirements will be carried out during the duration of the EMERGENCY COVID-19.

    "Borrowers with total and permanent disabilities should focus on their well-being, not put their health on the line to present profit information during the Emergency Covid-19," said Secretary of Education, Miguel Cardona . "The waiver of these requirements will not ensure that there is no Borrower, which risks were permanently deactivated to reimburse their loans simply because they could not send papers."

    The department is providing this relief to Borrowers who receive a federal student loan download due to total and permanent disability. Unless it is through a process with the Department of Veterans Affairs, the Borrowers receiving this tall are, by regulation, subject to a period of three-year monitoring. During this time, Borrowers must provide the department information about their employment earnings.

    By Regulation, the Borrowers whose profits exceed certain thresholds and Borrowers who do not meet certain other criteria will have their loans. However, a report of 2016 by the Government's Responsibility Office found that 98 percent of restored disability discharges occurred not because the profits were too high, but Borrowers simply did not present the requested documentation.

    As of today, the department will not require Borrowers who received a total and permanent disability performance to present the profit documentation during the Emergency Duration COVID-19. This change will be made retroactive as of March 13, 2020, the beginning of the national emergency Covid-19.

    In addition, the department will reverse any re-establishment requirements of loan reimbursement that occurred during this period because the Borrower did not present profit information. The Borrowers impacted will not be required to submit a subsequent documentation of their income for the period covered by the Emergency COVID-19. Borrowers will begin to see their loans return to a download state in the coming weeks, even through the monitoring communications of their administrator. The department is considering other future changes on how it supervises profits for those who receive a total and permanent disability performance.

    Today's announcement is part of the continuous efforts of the Biden-Harris administration to ensure that student loan Borrowers receive support and protection during the Emergency Covid-19. This includes pausing of interest, payments and collection activity on the vast majority of federal student loans at least 30 September 2021. The department also requested an exemption from the administration of small businesses to help almost 30,000 owners of small businesses in the protection of payment checks that faced difficulties because they were criminals or default in AF

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