Biden Forgives $39 Billion , in Student Debt.
The Biden administration made the announcement on July 14, CNBC reports.
The debt of 804,000 borrowers totaling
$39 billion will be automatically forgiven.
The relief comes as income-driven
repayment plans have been adjusted.
Borrowers enrolled in those plans are eligible to have any remaining debt canceled after they've made on-time payments for 20-25 years.
But the Biden administration says that many of those borrowers' payments weren't accounted for.
For far too long, borrowers fell
through the cracks of a broken
system that failed to keep accurate
track of their progress towards forgiveness. , Miguel Cardona, U.S. Secretary of Education, via statement.
In order to get borrowers to qualify for forgiveness,
the Biden administration included partial
and late payments, as well as payments that were
once paused due to deferments and forbearances.
The move comes after
the Supreme Court denied President Biden's federal student loan forgiveness plan.
Under that plan, 37 million people
would have had student debt relief