I guess the old man was able to keep his promise to 800,000 of the citizens. Good on him. Hopefully this can't be reversed.
Some will be mad.
The ***** administration announced Friday it would automatically forgive $39 billion in for 804,000 borrowers.
The relief is a to the student loan system's . Under those repayment plans, borrowers get any remaining debt canceled by the government after they have made payments for 20 years or 25 years, depending on when they borrowed, and their loan and plan type.
In the past, payments that should have moved a borrower closer to being debt-free were not accounted for, according to the ***** administration.
"For far too long, borrowers fell through the cracks of a broken system that failed to keep accurate track of their progress towards forgiveness," U.S. Secretary of Education Miguel Cardona said in a statement.
To bring people over the line for forgiveness, the ***** administration counted payments for borrowers who'd paused their payments in certain and those who'd made partial or late payments.
Although the forgiveness is a huge victory for borrowers, it is relief to which they were entitled, said Persis Yu, deputy executive director at the Student Borrower Protection Center.
"Make no mistake — over 804,000 people are receiving relief with this action because of 804,000 failures — and this is only the tip of the iceberg," Yu said in a statement. "Working people have been made collateral damage by a ***********al student loan system."
The announcement comes weeks after President 's sweeping student loan forgiveness plan, which would have delivered relief to .
The Education Department will notify eligible borrowers in the coming days.
Some will be mad.
- The ***** administration announced it would automatically cancel education debt for 804,000 borrowers, for a total of $39 billion in relief.
- The debt cancellation is a result of the administration's fixes to repayment plans, which included updated counts of borrowers' payments.
The ***** administration announced Friday it would automatically forgive $39 billion in for 804,000 borrowers.
The relief is a to the student loan system's . Under those repayment plans, borrowers get any remaining debt canceled by the government after they have made payments for 20 years or 25 years, depending on when they borrowed, and their loan and plan type.
In the past, payments that should have moved a borrower closer to being debt-free were not accounted for, according to the ***** administration.
"For far too long, borrowers fell through the cracks of a broken system that failed to keep accurate track of their progress towards forgiveness," U.S. Secretary of Education Miguel Cardona said in a statement.
To bring people over the line for forgiveness, the ***** administration counted payments for borrowers who'd paused their payments in certain and those who'd made partial or late payments.
Although the forgiveness is a huge victory for borrowers, it is relief to which they were entitled, said Persis Yu, deputy executive director at the Student Borrower Protection Center.
"Make no mistake — over 804,000 people are receiving relief with this action because of 804,000 failures — and this is only the tip of the iceberg," Yu said in a statement. "Working people have been made collateral damage by a ***********al student loan system."
The announcement comes weeks after President 's sweeping student loan forgiveness plan, which would have delivered relief to .
The Education Department will notify eligible borrowers in the coming days.