Biden admin to forgive $39 billion in student loan debt for 800,000 borrowers. Here's what to know.

The Department of Education said it will begin notifying borrowers today about the automatic discharge of their debt, which will occur in the next few weeks. the Biden administration's plan for broad-based student loan forgiveness, which would have helped more than 40 million borrowers each erase up to $20,000 in debt.

These are people who were enrolled in IDRs and who have accumulated the equivalent of either 20 or 25 years of qualifying monthly payments, the administration said. The administration said it is discharging the loans now because it wants to fix"historical failures" in how IDRs were managed. "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 in the statement. The Higher Education Act and Education Department regulations state that a borrower is eligible for forgiveness after making either 240 or 300 monthly payment in an IDR plan or the standard repayment plan.

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