Obama forgives entire $7.7 billion student debt

Obama forgives entire $7.7 billion student debt

The Obama administration is reported to from Monday begin the process of erasing the debt or student-loan of people with disabilities.

Obama forgives entire $7.7 billion student debt

Twitter buzz about Obama's decision to forgive about 400,000 students their loans.

The program is for people who are permanently disabled and cannot work.

According US’ Education Department letters will be sent to about 387,000 people whom the agency has identified as eligible — loans worth about $7.8 billion. Of those, about 179,000 people have student loans that are in default.

The new policy means borrowers whose loans are forgiven would not be at risk of having their Social Security or disability payments seized.

READ ALSO: Collapse of building at Uganda kills 5 injures others

President Barack Obama called for a more streamlined process as part of his Student Aid Bill of Rights last year.

Beginning Monday, the department will start sending letters to that group of about 387,000, explaining they are eligible for loan forgiveness. The letter will include an application that they will simply sign and return. Unlike other borrowers, they will not be required to submit documentation of their eligibility.

Related news

Healthy baby boy born from the oldest sperm in the world (photos)

Healthy baby boy born from the oldest sperm in the world (photos)

Healthy baby boy born from the oldest sperm in the world (photos)