Biden Nixes $39 Billion In Student Debt For More Than 800,000 Borrowers
The Biden administration announced Friday that it will erase a total of $39 billion in student loan debt for 804,000 borrowers.The act is the result of fixes to the federal student loan system’s income-driven repayment plans, which cancel certain borrowers’ debt if they make payments for 20 or 25 years.In the past, failures in the program resulted in qualified payments not being counted towards forgiveness, the administration said.“At the start of this Administration, millions of borrowers had earned loan forgiveness but never received it. That’s unacceptable,” Education Department Under Secretary James Kvaal said in a statement. “Today we are holding up the bargain we offered borrowers who have completed decades of repayment.” Eligible borrowers will start to receive notification on Frid...