Student loans of at least 40,000 borrowers will be canceled immediately under the Public Service Loan Forgiveness Program, the Department of Education said on Tuesday. For those who are in dire need of cash, perhaps other loans like a no guarantor loan for bad credit are a viable option.
Several thousand borrowers with older loans will also receive forgiveness through income-driven repayment and more than 3.6 million borrowers will receive at least three years of additional credit toward income-driven forgiveness, according to Federal Student Aid, the largest provider of financial aid for college and university students in the United States.
“Student loans were never meant to be a life sentence, but it’s certainly felt that way for borrowers locked out of debt relief they’re eligible for,” said U.S. Secretary of Education Miguel Cardona.
“Today, the Department of Education will begin to remedy years of administrative failures that effectively denied the promise of loan forgiveness to certain borrowers enrolled in IDR plans. These actions once again demonstrate the Biden-Harris administration’s commitment to delivering meaningful debt relief and ensuring federal student loan programs are administered fairly and effectively.”
The department says the move will help address the impact of the COVID-19 pandemic on borrowers with lower incomes and high debt loads, giving borrowers an affordable and effective path out of debt.
“First Student Aid will conduct a one-time account adjustment that will count forbearances of more than 12 months consecutive and more than 36 months cumulative toward forgiveness under IDR and Public Service Loan Forgiveness Program,” the department said in a statement.
Earlier in April, the Education Department announced an extension of the student loan repayment pause through Aug. 31, delaying any interest and collections as well through the summer.
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They borrowed that money from “WE THE PEOPLE. The Department Of Education has no business injecting themselves in the collection of the debt.
LET alone, carte blanche, deciding to forgive them WHILE WE TAX PAYERS forfeit the debt.
Forgiving 40,000 loans or even one by Presidential edict is social theft by other means and social discrimination by class, age, race and gender, and illegal vote buying by subversive criminal means. The offer of it before the election with the full understanding it will be overturned in the courts AFTER the election is election theft of the most sinister intentions. Who votes in the dishonest and expects to get good results. The last election was a great education for THE PEOPLE who cannot be fooled all of the time, and it will only give birth to outright violent rebellion if it succeeds again this fall. Pursuit of excellence in leadership may not be woke, but is the best policy in the end.
Pay me now in forgiven Student Loans, pay me later when your society crashes in corrupt illegal redistribution of wealth, and Trillions in debt beyond belief.
So, when will they pay off my debt: home, CC bills? They expect me and you to help them buy votes via taxpayer money and I will bet my total bills are a 1/16 of what one student loan forgiveness payoff would be. And all of us, including the student loan holders will be bankrupted by the taxes to come because of this. Our gov doesn’t owe this to anyone!
Exactly. We’ve already seen some dems, push for renter forgiveness… SO WHEN Is mortgage forgiveness next?