Joe Biden govt to forgive $39 billion in student debt for 804,000 borrowers: Report
CNBC reported on 14 July. As per details, the relief is a result of fixes to the student loan system’s income-driven repayment plans.
Now, the borrowers will get their debt canceled by the government after they have made payments for 20 years or 25 years. Though this depends on details including the time of borrowing loans, plan type, etc.
According to the Biden administration, the payments which should have moved a borrower closer to being debt-free were not accounted for in the past. ALSO READ: In Summer’s Great Sock Debate, There Are No Winners "For far too long, borrowers fell through the cracks of a broken system that failed to keep accurate track of their progress towards forgiveness," CNBC quoted US Secretary of Education Miguel Cardona as saying.
The Biden administration in its move to bring people over the line for forgiveness, counted payments for borrowers who had paused payments in certain deferments and forbearances. Also, this plan has been initiated keeping in mind those borrowers who had made partial or late payments.
The new announcement comes a week after the Supreme Court struck down President Joe Biden’s sweeping student loan forgiveness plan. In the coming days, the Education Department will notify eligible borrowers, added the report.
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