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Biden administration eases student loan forgiveness through income-based repayment plans

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20.04.2022

The Biden administration on Tuesday announced changes to federal student loan repayment plans that will make it easier for millions of borrowers to have their debts forgiven after being required to pay for 20 or 25 years.

Education Department officials said they would make a one-time revision to millions of borrower accounts to compensate for what they called longstanding failures of how the agency and its contracted loan servicers managed the income-driven repayment programs. Democrats and consumer groups have been calling on the Biden administration to enact such a policy in recent months.

The income-driven repayment programs are designed to provide loan forgiveness to borrowers who have been making payments tied to their income for at least 20 or 25 years. But few borrowers have successfully received relief under those plans, which Democrats have long promoted as an important safety-net for struggling borrowers.

How the policy works: The Education Department said it........

© Politico


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