They are not certain exactly how many people will benefit from this, but do keep in mind, there are a lot of people who borrowed less than $10,000 who owe far more than that because of the way interest accumulated on their loans. So the Department of Education was supposed to put that particular feature into effect in July, but they were able to move it up to February. This is all rooted in Biden's latest repayment plan, commonly known as SAVE.Īnd one of the cool features of this plan is that, if you borrowed less than $12,000 originally and had been making payments for 10 years, whatever your remaining balance is would be forgiven. They extended these initiatives that made it a lot easier for people who had been paying for decades to have their loan forgiveness.Īnd the news of this today is what we're seeing as a result of this effort. So, the Biden administration came in and said, we're going to play cleanup, essentially. So there were hundreds of thousands of people for whom they'd been in payment for 20, 25, many more years than that and never received this benefit. Unfortunately, the Education Department for many years weren't keeping count of how many people actually were making payments on those loans during that time. Now, the promise as a part of these programs is, after 20 or 25 years of payments, you can get forgiveness for whatever your balance is on these loans. This is supposed to allow you to have more affordable payments, make it easier for folks to manage their loans. These are programs that allow you to pay based on your - a portion of your discretionary earnings. So, since the late 90s, there have been what are known as income-driven repayment programs. Danielle Douglas-Gabriel, The Washington Post:
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