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Millions closer to student loan forgiveness under policy changes

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A number of U.S. Department of Education changes to the student loan system will bring millions of student loan borrowers closer to debt relief.

Tuesday’s announcement by the Department stated that it will address historical failures in federal student loan administration.

These changes included a review of the repayment timelines for borrowers who are enrolled in income driven repayment plans or public service loan forgiveness. They also need to make sure that they have the right track for debt cancellation.

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According to the Department, up to 3.6 million individuals could become debt-free after making these improvements. Around 40,000 borrowers may get immediate relief.

U.S. Secretary Miguel Cardona said that while student loans weren’t meant to become a permanent sentence, it is felt as such by borrowers who are denied any debt relief. These actions are yet another demonstration of the Biden Harris administration’s dedication to providing meaningful debt relief and making sure federal student loan programs work fairly and efficiently.

Student loan outstanding debt is more burdensome than auto or credit card debt, and exceeds $1.7 trillion. Tens of millions are in student loan debt in America. Up to 25% are defaulting or in default.

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