The US Department of Education has made several changes about loan forgiveness.
Millions of people could be closer to loan forgiveness.
The US Department of Education is making changes
The US Department of Education plans to address the “historical failure in the administration” in regard to student loan forgiveness. After many lawsuits and complaints, the IDR promises affordable monthly payments and is planning for forgiveness after 20-25 years. Click here for more information.
Now the Department of Education is starting to “remedy years of administrative failures.” For many borrowers, student loans have become a “life sentence” because they are locked out of debt relief that they are eligible for.
It is estimated that these changes will lead to the cancellation of debt for more than 40,000 student loan borrowers. Thousands will qualify for debt cancellation under IDR (income-driven repayment).
US Department of Education’s commitment
- One-time account adjustment with long-term forbearances to give credit toward cancellation
- The Federal Student Aid office will give the credit
- for example, 16 months in forbearance would get credit for 16 qualifying payments toward cancellation
- Payments made prior to loans getting consolidated will also count
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