The Biden administration is canceling student loan debt for 804,000 borrowers who qualify under income-driven repayment plans but haven't received it because of errors

Starting Monday, hundreds of thousands of federal student loan borrowers will receive emails from their servicers with the subject line “Your student loans have been forgiven.”

The notices will come as part of the Biden administration’s previously announced efforts to cancel debt for 804,000 borrowers who qualify for relief under their repayment plans but haven’t yet received it because of what officials have called administrative failures.

  • MicroWave@lemmy.worldOP
    16·
    11 months ago

    The relief is targeted at people who enrolled in income-driven repayment (IDR) plans, which allow student loan debts to be forgiven by the federal government once payments have been made for 20 or 25 years, depending on the plan.

    • Flying Squid@lemmy.world
      20·
      11 months ago

      That isn’t enough, obviously, but there are people who will be paying student loans their entire lives because the interest is worth more than the loan. Also, even helping this 804,000 people will put more money into the economy, so this is overall a good thing for everyone.