The U.S. Department of Education declared on Friday that $39 billion in unpaid student loans would be canceled.
Over 804,000 people shall be notified by email in days to come that their federal student loans would be immediately erased. Borrowers need to have finished an income-driven repayment (IDR) plan with payments equal to one of 20 or 25 years’ worth of eligible months to be qualified for forgiveness.
The initial group of qualified borrowers who will receive notifications is 804,000 people. The Department of Education stated that overall, the Biden administration has authorized approximately $117 billion in student loan forgiveness to more than 3.4 million students, and it intends to keep finding and informing borrowers who meet the standards for forgiveness every 2 months till next year.
The option to withdraw will be available to borrowers for any cause.