This week, hundreds of thousands of borrowers are receiving student loan forgiveness as a result of a Biden administration initiative that adjusts qualifying payment counts.
“Beginning this week, 804,000 student loan borrowers started receiving $39 billion in automatic student loan discharges thanks to fixes to income-driven repayment (IDR) plans implemented by the Biden-Harris Administration,” said the Education Department in a statement on Tuesday.
But this is just the first group of borrowers approved for student debt relief under the adjustment initiative. Borrowers who don’t qualify now still have time to become eligible for loan forgiveness before the temporary program ends.
Student loan forgiveness under fixes to IDR and PSLF
This week’s student loan forgiveness is a result of the IDR Account Adjustment, a temporary Biden administration initiative first released last year. Biden established the program to address past failures in administering Income-Driven Repayment and Public Service Loan Forgiveness. These programs allow borrowers to receive student loan forgiveness after many years in repayment — 20 or 25 years for IDR plans, and as little as 10 years for PSLF (if borrowers were working in qualifying public service employment).
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