Acknowledging the program’s challenges, theDepartment said it would relax the rules during the coronavirus pandemic and consider other future reporting requirements changes. The agency said that until the declares an end to the pandemic, more than 190,000 borrowers in the three-year monitoring period will not be required to submit proof of their earnings. Another 41,000 who had forgiveness, amounting to a combined $1.3 billion. Secretary Miguel Cardona said borrowers with disabilities should not “put their health on the line” to submit earnings information.
The measure was a disappointment to advocates who have called for a total overhaul of the program. A Washington legal group, Student Defense, said the action helps a . The Biden to automatically clear loans for all qualified borrowers and permanently eliminate the monitoring period. Alex Elson, senior counsel for the group, said the new measure “is not a victory for students.” “There are roughly 400,000 borrowers with disabilities who the Social owed debt relief,” he said. “The Department of Education knows exactly who they are but chooses to do nothing for them.”
A senior department official briefing people who are “totally and permanently disabled” and unable to generate significant income. Borrowers are eligible if they can submit documentation of a mental or physical disability that has continued for at least five for that long. During the monitoring period, their incomes must not exceed the poverty level for a family of two in their state.the agency is exploring permanent changes to the program but that they would have to go through a federal rule-making process that requires months of negotiation. The program was created to help
The program was scrutinized in 2016 after areporting rules were a significant hurdle for borrowers. The U.S. Office found that in 98% of cases in which loans were restored, borrowers did not submit the correct paperwork, not because they were earning too much. In 2019, the veterans who become eligible for the program. Those who have not served in the military must apply for relief. Advocates estimate that nearly 70% of eligible borrowers have not received loan forgiveness and hold an estimated $14 billion in .