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US to automatically wipe out more than $5.8B in student loan debt


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The Biden administration announced Thursday it will automatically erase student loan debt for more than 300,000 Americans with severe disabilities that leave them unable to earn significant incomes…

 

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The Biden administration announced Thursday it will automatically erase student loan debt for more than 300,000 Americans with severe disabilities that leave them unable to earn significant incomes.

 

The move will wipe out more than $5.8 billion in debt, according to the Education Department, and it marks the start of a broader overhaul of a program that has been criticized for having overly burdensome rules.

 

“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,” Education Secretary Miguel Cardona said in a statement.

 

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Cool, but how are we cripples supposed to pay the forgiveness income tax when we're on SSI making $794 a month and limited to $2,000 in assets? Can't wait to read in my disability facebook groups how some dumb fuck social worker rules that this now makes them ineligible for home care because of income. 

 

Disabled poverty is a 110% a choice that's written into federal and state law. 

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31 minutes ago, Jwheel86 said:

Cool, but how are we cripples supposed to pay the forgiveness income tax when we're on SSI making $794 a month and limited to $2,000 in assets? Can't wait to read in my disability facebook groups how some dumb fuck social worker rules that this now makes them ineligible for home care because of income. 

 

Disabled poverty is a 110% a choice that's written into federal and state law. 

Just curious, and this is seriously a question, if your loans were forgiven, and they charged a forgiveness income tax you cannot afford to pay, are you allowed to declare bankruptcy as a response? I ask this because this is the one problem most people with astronomical student loans can't take because congress screwed over American students at the behest of banks, but I kind of wonder if this opens up a future loophole to be able to be used. I'm legitimately asking because I don't actually know the answer.

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26 minutes ago, brucoe said:

Just curious, and this is seriously a question, if your loans were forgiven, and they charged a forgiveness income tax you cannot afford to pay, are you allowed to declare bankruptcy as a response? I ask this because this is the one problem most people with astronomical student loans can't take because congress screwed over American students at the behest of banks, but I kind of wonder if this opens up a future loophole to be able to be used. I'm legitimately asking because I don't actually know the answer.

 

From what I'd see the IRS can garnish up to 15% of your Social Security 

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