An estimated $5.8 billion in federal student loan debt will be wiped out through this initiative.
TheFederal Reserveestimates that at the end of 2020, the student loan debt was $1.7 trillion.
No Interest Til Almost 2027?
You can stop paying federal student loans, but should you?5 ways to know.Don’t Miss:Get Paid $225/Month While Watching Movie Previews
The Biden administration announced in late December 2021 that the suspension of payments has beenextended until May 2022.
This is the fourth extension two by former President Trump and two by President Biden.
Note that the suspension does not mean forgiveness.
It means that loan payments will be on pause with no interest accruing.
The difference now is that better data is allowing the department to identify military personnel who qualify.
In 2019, only 4,800 service members received the benefit.
The automatic discharge initiative seeks to remedy that.
In recent years, the Department of Education has been removing some tool requirements for the TPD discharge program.
Those federal agencies keep records on people with total and permanent disabilities.
If the education department does not reach out to you, you may need to provide additional documentation.
In this case, your physician who must be a U.S.-based doctor of medicine (M.D.)
or doctor of osteopathy (D.O.)
will need to fill out Section 4 of theTPD discharge app.
Just be sure to have that person fill out the Applicant Representative Designation form instead.
Previously, getting your loans discharged was only half the battle.
And if you did not respond or your earnings were too high, your loans may have been reinstated.
For those who qualify through the VA, the monitoring period isnt required.
Adam Hardy is a former staff writer for The Penny Hoarder who specializes in stories on the gig economy.
Hes a University of South Florida graduate, who studied magazine journalism and sociology.
It sounds appealing right?
Check it out here!
