Changes to student loan programs could bring millions closer to getting out of debt, Education Department says
CBSN
The Education Department announced fixes on Tuesday to multiple student loan programs, giving thousands of borrowers immediate relief from student loan debt and bringing millions more years closer to having their student loans forgiven. It comes as the Biden administration continues to examine canceling student loan debt for millions of Americans.
The changes are being made to the Public Service Loan Forgiveness programs and the Income-Driven Repayment plans. According to the Education Department, the fixes will give 40,000 borrowers immediate forgiveness and bring at least 3.6 million borrowers closer to relief by at least three years through income-driven repayments.
"Student loans were never meant to be a life sentence, but it's certainly felt that way for borrowers locked out of debt relief they're eligible for," said Education Secretary Miguel Cardona in a statement. He said the move begins to "remedy years of administrative failures" and the actions demonstrate the administration's commitment to delivering "meaningful debt relief and ensuring federal student loan programs are administered fairly and effectively."
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