More than 800,000 borrowers with $39 billion in federal student loans will get their debt forgiven, the Biden administration said on Friday.
In an update on the loan relief plan, the Department of Education said Tuesday that it began notifying eligible borrowers by email on July 14 that they qualify for forgiveness. The loans will start to be discharged 30 days after those messages were sent, the agency said. Loan servicers will notify people when the loans have been forgiven.
"For far too long, borrowers fell through the cracks of a broken system that failed to keep accurate track of their progress towards forgiveness," said U.S. Secretary of Education Miguel Cardona in the statement. The Higher Education Act and Education Department regulations state that a borrower is eligible for forgiveness after making either 240 or 300 monthly payment in an IDR plan or the standard repayment plan.
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