No More Debt: 804,000 Student Loans to be Forgiven

The Biden administration has forgiven $39 billion in student loan debt for 804,000 borrowers.

“For far too long, borrowers fell through the cracks of a broken system that failed to keep accurate track of their progress towards forgiveness,” says U.S. Secretary of Education Miguel Cardona.

Under the United State’s income-driven student loan repayment plans, borrowers get any remaining debt canceled by the government after 20 to 25 years of payments, depending on their loan and plan type. However, hundreds of thousands of people were disqualified when they made partial or late payments. The Biden Administration’s new relief plan will nonetheless forgive these borrowers of their remaining debt, a “relief to which they were entitled,” says Persis Yu, deputy executive director at the Student Borrower Protection Center. Eligible borrowers will be notified in the coming days by the United States Education Department.