Biden Announces $39 Billion Student Loan Forgiveness—800,000 Borrowers Could Lose Debts

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The Department of Education said lapses in its payment tracking system failed to account for some payments that would have pushed borrowers closer to a certain forgiveness date.

More than 800,000 federal student loan borrowers will have their debts automatically forgiven, the Biden Administration said Friday, citing administrative deficiencies that failed to account for some of the borrowers’ payments.... [+]The Department of Education will automatically cancel future loan payments for borrowers affected by the errors whose debts were supposed to be forgiven after 20 or 25 years, depending on their plan.

Due to what the agency called “administrative failures,” some of the borrowers’ payments were not counted toward the promised expiration date The loans will be “automatically discharged in the coming weeks,” the Department of Education said in a statement. The move comes after the Supreme Court earlier this month tossed President Joe Biden’s signature student-loan forgiveness program that promised to forgive up to $20,000 in debt for 43 million federal borrowers.

 

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