Biden announces student loan forgiveness following Supreme Court ruling
The Biden administration announced on Friday that they would erase $39 billion for 800,000 borrowers due to inaccurate payment counts made under income-driven repayment (IDR) plans. The plan will automatically and retroactively credit qualifying borrowers for mistakes made by federal loan services. It will also credit borrowers for late and partial payments and forbearances before the pandemic. The Department of Education said the plan will fix “historical failures in the administration of the federal student loan program in which qualifying payments made under IDR plans that should have moved borrowers closer to forgiveness were not accounted for.
