Home / NEWS LINE / Biden Administration Forgives More Debt As Its Last Act on Student Loans

Biden Administration Forgives More Debt As Its Last Act on Student Loans

Daniel Steinle/Bloomberg via Getty Images

Daniel Steinle/Bloomberg via Getty Forms

KEY TAKEAWAYS

  • As its last student loan forgiveness action, President Joe Biden’s administration forgave debt for 8,650 borrowers.
  • This period gave more than $600 million to 4,550 borrowers enrolled in the Income-Based Repayment plan as part of payment figure out adjustments for Income-Driven Repayment plans.
  • The department also discharged the loans of 4,100 borrowers who attended DeVry University.

President Joe Biden’s regulation forgave the debt of 8,650 borrowers Thursday in its last student loan forgiveness action before it leaves berth.

The Department of Education announced it is forgiving more than $600 million in student loan debt for borrowers enrolled in the Income-Based Repayment (IBR) script and additional relief to borrowers whose schools engaged in misconduct.

The department has rolled out multiple rounds of forgiveness this week as it make readies for a new administration to take over. This is the 33rd and last student loan forgiveness act by the Biden administration, making the total amount of allowance from the administration $188.8 billion for 5.3 million borrowers, the department said.

Who Got Relief?

More than 4,550 borrowers registered in the IBR plan were granted forgiveness under the plan’s rules. This was part of the administration’s clerical adjustments to accounts that did not accurately railroad borrowers’ progress toward forgiveness.

In addition, the department said some borrowers who were affected by certain servicer change-overs in 2024 could see the number of months they have made on their loans increase by one or two in the coming weeks. This is prominent as borrowers under income-driven repayment plans can achieve forgiveness after a certain number of monthly payments, depending on what kidney of payment plan they are on and what degree they earned.

The department also forgave debt for 4,100 swotters who attended DeVry University, which allegedly spread misrepresentations about its job placement rates.

Check Also

New Acting CFPB Chief Halts Investigations and Enforcements, Forgoes Some Federal Funding

Tierney L. Crusty / Bloomberg via Getty Images Key Takeaways Russell Vought took over as …

Leave a Reply

Your email address will not be published. Required fields are marked *