Student loan forgiveness: 125,000 borrowers receive positive news on debt relief

The White House announces debt relief for an additional 125,000 student loan borrowers through existing programs with past issues.

The White House has announced that an additional 125,000 student loan borrowers will receive debt relief from the federal government. This relief will be provided through three existing debt relief programs that have faced issues in the past. These problems primarily revolve around miscounted or incorrectly credited payments.

This announcement comes shortly after federal student loan payments resumed following a pause of over three years due to the COVID-19 pandemic. The new debt relief plan encompasses various categories of borrowers.

Firstly, 53,000 borrowers will have their debts canceled under the Public Service Loan Forgiveness (PSLF) program. The PSLF program aims to eliminate remaining student loan debt for qualifying public sector workers who have made ten years' worth of monthly payments.

Additionally, 51,000 borrowers who have been in repayment for at least 20 years will have their debts erased. The administration discovered that these borrowers already qualified for student loan forgiveness but were not notified of their eligibility.

Lastly, nearly 22,000 borrowers who have a total or permanent disability will receive an automatic debt discharge. This approval was granted through a data match with the Social Security Administration.

In August, the administration introduced an income-driven repayment plan called SAVE (Saving on a Valuable Education). This plan aims to reduce monthly payments for eligible student loan borrowers.

It is important to note that the U.S. Supreme Court rejected President Biden's student loan forgiveness program in June. This program would have canceled up to $20,000 in student loan debt for individual borrowers, totaling $430 billion.

Overall, this announcement signifies the government's commitment to providing relief to student loan borrowers who have faced financial challenges. The various debt relief programs aim to alleviate the burden of student loan debt and ensure that eligible borrowers receive the support they need.

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