07/14/2023

Using Program Fix, Biden Forgives $39 Billion in U.S. Student Debt

The relief addresses 'historical inaccuracies'

President Joe Biden's administration will cancel $39 billion in student debt for more than 804,000 borrowers, the Education Department said on Friday, describing the relief as the result of a "fix" to income-driven repayment (IDR) plans.

Borrowers will be eligible for forgiveness if they have made either 20 or 25 years of monthly IDR payments, the department said. The IDR program caps payment requirements for lower-income borrowers and forgives their remaining balance after a set number of years.

The department said the relief addresses what it described as "historical inaccuracies" in the count of payments that qualify toward forgiveness under IDR plans.

Please select this link to read the complete article from Reuters.