Millions of student loan borrowers will be closer to debt forgiveness after a series of changes the US Department of Education plans to make to the loan system.
The department made the announcement Tuesday and said it plans to address “historic failures in the administration of federal student loan programs.”
Those changes include reevaluating payment terms for borrowers enrolled in income-based repayment plans and public service loan forgiveness and making sure they are on track for the eventual debt cancellation these lead to. programs.
According to the department, up to 3.6 million people could be closer to debt forgiveness after these changes. Around 40,000 borrowers can get immediate relief.
“Student loans were never meant to be a life sentence, but it certainly feels that way for borrowers excluded from the debt relief they are eligible for,” said US Education Secretary Miguel Cardona. . “These actions once again demonstrate the Biden-Harris administration’s commitment to providing meaningful debt relief and ensuring that federal student loan programs are administered fairly and effectively.”
Outstanding student loan debt exceeds $1.7 trillion, placing more of a burden on Americans than credit card or car debt. Tens of millions of people in the US are in debt for their education and as many as a quarter are delinquent or delinquent.