After Biden’s student forgiveness plan was struck down by the Court, the Department of Education announced the debt relief forgiveness of borrowers under Income Driven Repayment Plans.
The US Education Department announced that it would automatically forgive the student loans of over 800,000 borrowers with the Income Driven Repayment Plans.
Education Secretary Miguel Cardona. | Education Week
Income Driven Repayment Plans Student Debt Relief Qualification
The US Education Department will provide relief for longtime borrowers on income-driven repayment plans as the student loan debt forgiveness plan of President Biden was strike. Income Driven Repayment Plans are loans for student who came from low-income families. The income-driven repayment plans are based on a borrower’s income and family size and not on the amount borrowed.
Education Secretary Miguel Cardona stated that the student debt relief will be to help the poor and overlooked borrowers on Income Driven Repayment Plans.
To qualify for the income driven repayment plans student debt relief one must be a loan borrower on any income-driven repayment plans that has made at least 20 years of payments.
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Eligible income driven repayment plans borrowers for the debt relief are to receive notifications from of July 14 onward.
Those income driven repayment plans borrowers who qualify for the said debt forgiveness should check to see their loan balances be discharged and reduced on the following weeks.
Only those on income driven repayment plans borrowers who have struggled to eliminate their debt even after paying for two decades.
Lending Tree listed the options under the income driven repayment plans:
- Income-Based Repayment (IBR)
- Pay As You Earn (PAYE)
- Revised Pay As You Earn (REPAYE)
- Income-Contingent Repayment (ICR)
To know more about the terms and requirements of these options under the income driven repayment plans, check out Lending Tree.
Read More: How to Know If the Education Department Is Forgiving Your Student Loan
