Biden administration has announced plans to reform and expand its student loan forgiveness and income-based repayment programs.
As the Department of Education’s press release states, the changes will benefit over 3.6 million student loan recipients. According to Federal Student Aid, these forthcoming changes will also result in immediate debt cancellation for at least 40,000 people under the current Public Service Loan Forgiveness Program. The Department of Education noted it had many failures in the handling of its student loan program, and did not sufficiently support borrowers during the COVID-19 pandemic.
“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,” said U.S. Secretary of Education Miguel Cardona. “Today, the Department of Education will begin to remedy years of administrative failures that effectively denied the promise of loan forgiveness to certain borrowers enrolled in IDR (income-driven repayment) plans. These actions once again demonstrate the Biden-Harris administration’s commitment to delivering meaningful debt relief and ensuring federal student loan programs are administered fairly and effectively.”
It’s not full forgiveness, but it’s progress!