Mastodawn

MicroWave Aug 15, 2023

Biden administration begins canceling student loan debt for 804,000 borrowers

Biden administration begins canceling student loan debt for 804,000 borrowers - Lemmy.world

Starting Monday, hundreds of thousands of federal student loan borrowers will receive emails from their servicers with the subject line “Your student loans have been forgiven.” The notices will come as part of the Biden administration’s previously announced efforts to cancel debt for 804,000 borrowers who qualify for relief under their repayment plans but haven’t yet received it because of what officials have called administrative failures.

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burningquestion Aug 15, 2023

The relief is targeted at people who enrolled in income-driven repayment (IDR) plans, which allow student loan debts to be forgiven by the federal government once payments have been made for 20 or 25 years, depending on the plan.

But because of well-documented errors in tracking payments, many borrowers enrolled in IDR plans have been left paying well beyond their payment end dates, with no forgiveness in sight.

Let’s read that again. No changes in policy are happening, the Biden administration is literally just applying the terms of the already-on-the-books-and-already-lawful repayment plan to nearly a million people who were supposed to have their debts forgiven already.

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CuriousLibrarian

This point will be lost in the reaction to this new approach. These people have been paying back their debt for a long time. Errors have been made. Relief is on the way.