On Monday, student-loan companies are set to begin discharging the debt of— part of the first batch of borrowers affected by the Education Department's one-time account adjustment for income-driven repayment plans.
"At the start of this Administration, millions of borrowers had earned loan forgiveness but never received it. That's unacceptable," Under Secretary of Education James Kvaal said in a statement at the time."Today we are holding up the bargain we offered borrowers who have completed decades of repayment."
The groups argued that because they're nonprofits, the relief would undermine their recruiting efforts through the Public Service Loan Forgiveness program, which forgives student debt for government and nonprofit workers after 10 years of qualifying payments.