The Biden administration will cancel $39 billion in student debt. Here's who is eligible.

Hundreds of thousands of borrowers who have been paying their student loans for decades will have their debt canceled, the Biden administration announced Friday.

“For far too long, borrowers fell through the cracks of a broken system that failed to keep accurate track of their progress towards forgiveness,” Miguel Cardona, the Secretary of Education, said in a statement announcing the relief. “By fixing past administrative failures, we are ensuring everyone gets the forgiveness they deserve.”

In 2017, the Consumer Financial Protection Bureau and multiple states sued Navient, which then was one of the largest student-loan servicers, accusing the company of pushing borrowers toward forbearance instead of enrolling borrowers in income-driven plans. The debt relief recognizes that “after decades of servicer abuses and general mismanagement by the Department of Education … there are millions of borrowers who have been in repayment for decades, and if they had the tools and the support necessary, they would be out of debt now,” said Persis Yu, managing counsel and deputy director of the Student Borrower Protection Center, an advocacy group. “That’s what this group of borrowers is.

These borrowers have direct loans or federal family education loans held by the Department of Education, and have made at least 240 or 300 qualifying months of payments.

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