In a significant move aimed at providing relief to borrowers, the Biden administration has announced the automatic cancellation of $39 billion in student debt for more than 800,000 borrowers. This measure is a result of the administration’s efforts to address issues within the repayment plans, including accurate tracking of borrowers’ payments.
The announcement made on Friday revealed that the Biden administration has taken steps to automatically forgive $39 billion in student debt. This relief is specifically targeted towards 804,000 borrowers who will benefit from this significant measure.
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The debt cancellation stems from necessary improvements made to the income-driven repayment plans within the student loan system. Under these plans, borrowers become eligible for debt cancellation by the government after making payments for either 20 or 25 years, depending on the time of their borrowing and the type of loan and repayment plan they have.
The announcement follows the recent Supreme Court ruling that struck down President Joe Biden’s extensive student loan forgiveness plan, which aimed to provide relief to approximately 37 million individuals burdened by student debt.
In the coming days, the Education Department will notify eligible borrowers, informing them of their eligibility for this substantial debt forgiveness initiative. This step is expected to bring significant relief to countless individuals struggling under the weight of student loans.
