Biden announces $39B in student loan forgiveness, move would forgive student loans of more than 800K borrowers
The White House on Friday announced plans to approve $39 billion of federal student loans to be discharged for over 804,000 borrowers in the upcoming weeks.
For eligibility, borrowers would have to have paid their loans for 20-25 years, or 240 to 300 months on an income-driven repayment (IDR) plan. They’d also had to have either direct loans or Federal Family Education Loans. Loans that parents take out, parent PLUS loans, are also included.
The administration will also allow people who paid partially or late during a payment period to be considered. Borrowers who also spent a consecutive year or more in forbearance, when loan payments are temporarily halted, also qualify.
This announcement from President Joe Biden is relief for student loan borrowers who lost hope after the Supreme Court’s ruling on the Biden administration’s forgiveness plan, which struck down a proposal that would have provided up to $20,000 in debt relief for 43 million borrowers. Biden’s news comes two weeks after the high court struck down the administration’s student loan forgiveness plan.
President Joe Biden said in a statement Friday afternoon after the announcement, “I have long said that college should be a ticket to the middle class — not a burden that weighs down on families for decades.”
Borrowers will be emailed that they’ve been selected for being discharged and effects will hit 30 days after. Those not eligible will have their loan count updated.
Federal statistics show that Georgia has the third-highest rate for student loan debt nationwide, with an average of almost $42,000 per borrower.