Biden Administration Forgives More Debt As Its Last Act on Student Loans | Global News Avenue

President Joe Biden’s administration on Thursday forgave the debt of 8,650 borrowers in his final act of student loan relief before leaving office.

The Department of Education announced that it will forgive more than $600 million in student loan debt for borrowers enrolled in the Income-Based Repayment (IBR) program and provide additional relief to borrowers involved in school misconduct.

this The department has rolled out multiple rounds of leniency This week, it is preparing for a takeover by a new government. The department said this is the Biden administration’s 33rd and final student loan relief bill, bringing the total government relief to 5.3 million borrowers to $188.8 billion.

Who gets relief?

More than 4,550 borrowers enrolled in the IBR program received forgiveness under the program’s rules. It’s part of the government’s clerical changes to accounts that don’t accurately track borrowers’ progress toward forgiveness.

Additionally, some borrowers affected by the transition of certain servicers in 2024 may see their loan terms increase by one to two months in the coming weeks, the department said. This is important because borrowers under an income-driven repayment plan can receive relief on a certain amount of monthly payments, depending on the type of repayment plan they are on and the degree they earn.

The department also has forgiven the debt of 4,100 students who attended DeVry University, which allegedly spread false statements about its job placement rates.