President Joe Biden has taken action for student loan borrowers.
These actions will impact and favor federal student loan borrowers.
Income-driven repayment program
Biden has announced that his administration will help borrowers enroll in income-driven repayments, or IDR. Nearly 9 billion borrowers have paid off their debt using an IDR plan. Read more about it here.
After 20 0r 25 years enrolled in IDR, you’ll likely be able to pay your debt in full. This plan does help borrowers avoid loan defaults by lowering monthly payments.
The Department of Education and the Government Accountability Office did verify mismanagement of the IDR program, Changes have been announced and will take place this year.
This initiative should lead to serious debt cuts within three years for nearly 3.6 million borrowers.
The new changes may benefit you if:
- you had miscounted payments
- student loan misinformation
- Public Service Loan Forgiveness available to sector works after 10 years of qualifying payments
- Paid 20 or 25 years and still haven’t qualified for relief
The Department of Education will begin implementing the changes at the end of the year.
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