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