Student loan forgiveness: $9 billion in new loan forgiveness for 125,000 in U.S.
The latest White House student loan forgiveness plan will cover some 125,000 Americans owing about $9 billion.
The relief comes in the form of “fixes” to existing income-driven repayment, or IDR, and Public Service Loan Forgiveness, or PSLF, plans and by canceling debt for borrowers with total and permanent disabilities.
“Today’s announcement builds on everything our administration has already done to protect students from unaffordable debt, make repayment more affordable, and ensure that investments in higher education pay off for students and working families,” said U.S. Secretary of Education Miguel Cardona.
Covered are:
- 53,000 borrowers under the PSLF program are eligible for $5.2 billion in forgiveness. PSLF erases student loan balances of public service workers who have worked 10 years and made 120 qualifying payments.
- 51,000 borrowers will receive $2.8 billion in new debt relief through IDR fixes. These are borrowers who have been in repayment for 20 or more years but never received relief.
- $1.2 billion for nearly 22,000 borrowers who have total or permanent disability and have been approved for dismissal through data provided by the Social Security Administration.
Most people who qualify for IDR forgiveness have already received notices from the Education Department. Others will be notified in the next 30 days.