The Biden Administration announced Friday that approximately 804,000 student loan borrowers will automatically have their debts wiped clean.
This relief works to cancel remaining loan balances based on the income-driven repayment plan for borrowers that have made payments on their student loan debt for 20 to 25 years.
“For far too long, borrowers fell through the cracks of a broken system that failed to keep accurate track of their progress towards forgiveness,” U.S. Secretary of Education Miguel Cardona said in a statement.
The department of education plans to notify borrowers in the next week if they qualify for debt cancellation under the umbrella of $39 billion in total forgiveness across the country.
Read more: Can Biden still cancel student loans? Actually, yes, say experts and the White House
The Biden administration also accounted for borrowers who paused their payments in deferments, forbearances and those who made partial or late payments.
While the U.S. Supreme Court struck down President Biden’s student loan forgiveness plan in June – halting relief for more than 43 million borrowers – today’s announcement gets borrowers closer to financial freedom, observers say.
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