Biden administration to automatically forgive 804,000 student loans

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The borrowers eligible for forgiveness have been in repayment for over 20 years and will soon be notified of the changes.

The Department of Education announced it will begin forgiving more than 804,000 federal student loan borrowers as a result of fixes"to ensure all borrowers have an accurate count of the number of monthly payments that qualify toward forgiveness under income-driven repayment plans."

Borrowers in income-driven repayment plans have long been eligible for forgiveness after 20 years of repayments, but the changes made by the Biden administration broaden what it means to be in repayments.

Those who reach the milestone in August or later will likely have to start making payments, but officials said they would get a refund for any payments beyond the number needed for forgiveness. “For far too long, borrowers fell through the cracks of a broken system that failed to keep accurate track of their progress towards forgiveness,” said U.S. Secretary of Education Miguel Cardona. “Today, the Biden-Harris Administration is taking another historic step to right these wrongs and announcing $39 billion in debt relief for another 804,000 borrowers.

 

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