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Monday, December 4, 2023 | 
U.S. & World

These 320,000 people just got their student debt wiped away

The Education Department canceled student debt for 320,000 borrowers

By Herb Scribner Herb Scribnerhscribner@deseretnews.com
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Graduates line up before the start of the Bergen Community College commencement at MetLife Stadium.

New graduates line up before the start of the Bergen Community College commencement at MetLife Stadium in East Rutherford, N.J.

Seth Wenig, Associated Press

The U.S. Department of Education said Thursday it will wipe away $5.8 billion in student debt for more than 320,000 borrowers.

  • “We’ve heard loud and clear from borrowers with disabilities and advocates about the need for this change, and we are excited to follow through on it,” said U.S. Secretary of Education Miguel Cardona, in a statement.

Details of new student loan forgiveness

  • The debt forgiveness will go to borrowers who have total and permanent disability.
  • These borrowers will automatically be granted relief. The education department will use Social Security Administration data to figure out who will receive relief.
  • Borrowers will see the relief show up in September.

Per CNBC, the Department of Education will stop asking these some odd 320,000 borrowers to stop sharing earnings data after they receive their relief.

Do you qualify?

NPR reports that only a small amount of people are getting the student debt relief that they are entitled to get under the Total and Permanent Disability Discharge program. In fact, some people still don’t know they qualify.

  • The program is meant to help people who can no longer work because of their disabilities. Borrowers had previously needed to apply for the relief.