The Biden administration announced Friday they will automatically discharge $39 billion in Federal student loans for 804,000 borrowers in the coming weeks as the Department of Education (DOE) implements fixes to address “historical failures” in the loan program.
According to the DOE press release, the fixes implemented by the administration will ensure all borrowers have an accurate count of the number of monthly payments that qualify toward forgiveness under income- driven repayment (IDR) plans. Eligible borrowers will receive the student loan debt forgiveness if “they have accumulated the equivalent of either 20 or 25 years of qualifying months.”