On Friday, the Biden administration said it will cancel student debt for more than 70,000 borrowers.
The Biden administration said on Friday that it forgave student debt for tens of thousands of borrowers, the latest in a move to cancel education loans that have helped millions of Americans wipe out billions of dollars of outstanding arrears.
The 74,000 borrowers that qualify for forgiveness which amounts to about $5 billion of debt cancellation announced on Friday include teachers, nurses, firefighters, the White House said, and those who have spent a decade in public service.
« My Administration is able to deliver relief to these borrowers – and millions more – because of fixes we made to broken student loan programs that were preventing borrowers from getting relief they were entitled to under the law, » President Joe Biden said in a statement.
That program says it helps forgive the remaining balance on direct loans « after you’ve made the equivalent of 120 qualifying monthly payments under an accepted repayment plan, and while working full-time for an eligible employer. » Applicants can apply for a PSLF program through a form available on a Federal Student Aid page on their website.
The other program that today’s debt cancellation applies to will be through the income-driven repayment (IDR) plan whose payments are based on a borrower’s income and family size.
