Federal loans owed by around 64,000 Texans will be erased

Following a review by the U.S. Department of Education, it was determined that over 64,000 borrowers from Texas were eligible for the advantage, and their federal student loans would be canceled.

An amount of $3.1 billion in debt could be erased but $48,500 on average for each borrower.

The decision has nothing to do with President Joe Biden’s now-defunct initiative to erase student loan debt, which was rejected by the US Supreme Court this past month. Only debtors with federal loans from over 2 decades ago are covered by it.

The actions announced the previous week are a repair instead of a deferral; they apply to debtors whose responsibilities should be considered dismissed but weren’t as a result of “past administrative failures,” based on the Department of Education.

Since beginning to examine all federal loans the previous year, the Department of Education has found 804,000 borrowers countrywide who would have been eligible for debt forgiveness when they were involved in an “income-driven repayment plan.”