The Biden Education Department announced Friday that it will soon begin eliminating the federal student loan debt of more than 800,000 borrowers after implementing fixes to income-driven repayment plans, a move that advocates welcomed while urging the administration to use its authority to provide relief to all borrowers.
In a press release, the Education Department said its changes will cancel $39 billion in federal student loan debt—a tiny fraction of the $1.6 trillion in outstanding federal student loan debt in the United States.
"The forthcoming discharges are a result of fixes implemented by the Biden-Harris administration to ensure all borrowers have an accurate count of the number of monthly payments that qualify toward forgiveness under income-driven repayment (IDR) plans," the agency said. "These fixes are part of the department's commitment to address historical failures in the administration of the federal student loan program in which qualifying payments made under IDR plans that should have moved borrowers closer to forgiveness were not accounted for. Borrowers are eligible for forgiveness if they have accumulated the equivalent of either 20 or 25 years of qualifying months."
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