$39 Billion in Student Loan Relief for 804,000 People
Katherine Knott
July 17, 2023
The debt discharge is the result of an effort to give borrowers credit for more payments and rectify failings in the student loan system.
More than 804,000 borrowers will have their student loans forgiven in the next month following moves by the Biden administration to count more payments toward forgiveness.
The administration said in April 2022 that it would adjust accounts to give borrowers credit for payments and time spent in repayment. The adjustment is part of an effort to address failures in administering the income-driven repayment system “in which qualifying payments made under IDR plans that should have moved borrowers closer to forgiveness were not accounted for,” the department said in a news release.
