Borrowers who have made the"equivalent of either 20 or 25 years of qualifying months" in student loan payments are eligible have their remaining debt be discharged under the plan.
The new method of calculating eligibility is based on borrowers being in a state of repayment for the required time period, regardless of whether the payments were partial or late, or not paid at all in some cases. The plan credits months in which payments might not have been made due to forbearance, deferment or hardship claims as eligible toward the IDR forgiveness program threshold.on the IDR plan and several other existing student loan debt forgiveness programs.
Assuming the IDR forgiveness plan moves forward as expected, the debt is set to be"automatically discharged" for those eligible. While it is not clear when the debt will be eliminated, the Biden administration said before the lawsuit was filed that the debt would start to be canceled this week.last month that those eligible for relief would be informed"in the coming weeks.