President Joe Biden is continuing to work to solve America’s problem with student loan debt, and he just landed a major win!
On Friday, the Biden Administration announced that it plans to automatically forgive $39 billion in student debt for 804,000 borrowers.
As reported by CNBC, the relief comes from fixes to the student loan system’s income-driven repayment plans. Under those plans, borrowers will have their remaining debt cancelled by the government after they have made payments for 20 or 25 years. The time frame depends on when they borrowed, as well as their loan and plan type.
According to the Biden Administration, past payments that should’ve moved a borrower closer to being debt-free were not accounted for.
“For far too long, borrowers fell through the cracks of a broken system that failed to keep accurate track of their progress towards forgiveness,” says U.S. Secretary of Education Miguel Cardona in a statement.
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The new plan will count payments for borrowers who’d paused their payment in certain deferments and forbearances. Those who made partial or late payments will also be recognized.
This announcement comes weeks after the U.S. Supreme Court struck down Biden’s initial plan for student loan forgiveness, which would’ve helped 37 million borrowers with relief.
The Department of Education will notify eligible borrowers under this new relief within the coming days.
Biden Administration Forgives $39 Billion In Student Debt For Over 800K Borrowers was originally published on foxync.com
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