The Biden administration on Tuesday announced a new plan to address “long-standing failures” within federal student loan programs, and the changes are set to result in immediate debt forgiveness for some 40,000 borrowers.
The move comes as President Joe Biden has been facing increased pressure from Democrats to forgive burdensome student loan payments for millions of Americans. Since the start of the coronavirus pandemic, the federal government has paused the restart period for federal loan repayments six times, with the most recent extension lasting through August 31.
Now, the Department of Education has said that it will revise several aspects of income-driven repayment (IDR) programs in order to help borrowers inch closer to becoming debt-free.
“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, U.S. Secretary of Education Miguel Cardona said in a statement. “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 plans.” Read more…