Biden Administration Cancels $39 Billion in Student Debt for Over 800,000 Borrowers

(CTN News) – The Education Department has announced that the Biden administration will cancel $39 billion in student debt for more than 804,000 borrowers. This relief is attributed to a fix in the income-driven repayment (IDR) plans, providing significant support to those burdened by student loans.

Eligibility Criteria for Student Loan Forgiveness

Under the new program, borrowers will be eligible for loan forgiveness if they have made either 20 or 25 years of monthly IDR payments. The IDR program places caps on payment requirements for individuals with lower incomes and forgives the remaining balance after a specific number of years.

Addressing Historical Inaccuracies in Payment Count

The Education Department acknowledges and addresses historical inaccuracies in tracking payments that qualify for forgiveness under IDR plans. Secretary of Education Miguel Cardona emphasizes the need to rectify the flaws in a broken system that failed to accurately monitor borrowers’ progress towards forgiveness.

Biden’s Ongoing Efforts for Student Debt Relief

President Joe Biden expressed his commitment to providing relief for student loan borrowers, highlighting that his administration has already granted over $116 billion in loan relief to more than 3 million borrowers over the past two years. Despite the Supreme Court blocking his plan to cancel a significant amount of debt, Biden aims to pursue new measures for student loan relief.

Regulatory Process for $430 Billion Loan Relief Plan

The Education Department has initiated a regulatory “rulemaking” process to advance Biden’s $430 billion loan relief plan. However, this process is expected to take several months to finalize. The recently announced $39 billion relief program operates separately and focuses on adjusting the count of payments for forgiveness, as declared by the Biden administration in April 2022.

Vice President Harris’ Commitment to Affordable Higher Education

Vice President Kamala Harris reaffirms the administration’s dedication to ensuring accessible and high-quality postsecondary education without the burden of unmanageable student loan debt. The Biden administration remains committed to implementing policies that alleviate the financial strain on students pursuing higher education.

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