230,000 more student loan borrowers could receive relief after the Biden administration announced plans to write off more than $ 1.3 billion in student loan debt.
Those who are eligible for loan forgiveness have, in many cases, loan balances that had previously been cleared by the government, but returned because borrowers failed to keep officials informed of their income.
Borrowers eligible for the new student loan forgiveness are expected to be totally and permanently disabled, according to the Department of Education. They are required to submit income documents for three years as a condition of their loan release, to demonstrate that they have continued to need the relief.
Loans were reinstated if borrowers did not show that their income remained below government thresholds.
The Biden administration said this was another step in ensuring student loan debtors “receive support and protection during the COVID-19 emergency.” Due to the COVID-19 pandemic, Biden also suspended payments and interest on student loans until September 30.
“Borrowers with total and permanent disabilities should focus on their well-being, not put their health on the line to submit income information during the COVID-19 emergency,” the education secretary said Miguel Cardona, in a Press release published this week.