Millions of borrowers just got a quicker path to student loan forgiveness

Changes announced by the Department of Education Tuesday will help millions more borrowers become eligible for student loan forgiveness under income-driven repayment plans.

The Education Department said it will conduct a one-time revision of payment counts that will result in immediate forgiveness for about 40,000 borrowers who are in the Public Service Loan Forgiveness (PSLF) program. After the changes, more than 3.6 million borrowers who are enrolled in income-driven repayment (IDR) plans will also get at least three years of credit to bring them closer to loan forgiveness.

“Student loans were never meant to be a life sentence, but it’s certainly felt that way for borrowers locked out of debt relief they’re eligible for,” Secretary of Education Miguel Cardona said in a release announcing the news.

The changes will address what the Cardona called “years of administrative failures.” Borrowers’ accounts will be automatically updated later this year, the department said.

 

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