About 800,000 borrowers will be in luck as the Biden Administration announced giving $39 million worth of student loan forgiveness, but who are qualified?
Student loan forgiveness form. (Photo: Connecticut Education Association)
Student Loan Forgiveness to be Distributed to 800,000 Borrowers
The Department of Education initiated the process of informing over 804,000 borrowers that their Federal student loans, amounting to a substantial $39 billion, will be discharged automatically in the upcoming weeks.
According to the agency, this announcement comes as part of the Biden-Harris Administration’s broader efforts, which have already granted more than $116.6 billion in student loan forgiveness to over 3.4 million borrowers.
As a result of actions taken by the Biden-Harris Administration, upcoming loan discharges are set to occur. These discharges are a direct outcome of the administration’s efforts to rectify issues related to the counting of qualifying monthly payments for student loan forgiveness under income-driven repayment plans.
WGRZ reported that in an effort to rectify past mistakes, the current administration has announced a new round of student loan forgiveness. This measure aims to address errors made by previous administrations, ensuring that borrowers are granted the relief they deserve.
US President Joe Biden
Read more: Student Loan Forgiveness Remains Unchallenged Despite The SCOTUS Smackdown
Who Are Qualified for the Student Loan Forgiveness?
Previously, borrowers had the opportunity for student loan forgiveness after making a specific number of monthly payments, which varied based on their repayment plan and loan type. However, there was an issue where late, partial, or deferred payments were not taken into account for student loan forgiveness.
In a recent announcement, this situation has been addressed, and now all monthly payments, including those previously excluded, will count towards student loan forgiveness. This change ensures that borrowers receive the full benefits they are entitled to under the existing program.
According to Forbes, the recent update extends student loan forgiveness eligibility to borrowers on income-driven repayment plans, those in the public service loan forgiveness program, and individuals with direct or federal family education loans held by the Department of Education. All monthly payments will now count towards student loan forgiveness, regardless of payment history.
Also read: Biden Reveals A ‘Plan B’ On His Student Loan Forgiveness, Here Are Its Key Details
