Student Loan Repayment Deferment and Forbearance Updates
IDR Forgiveness Count Adjustment
Due to the recent payment count adjustment, past periods of repayment deferment and forbearance may now count towards forgiveness under the Income-Driven Repayment (IDR) program. This change opens up the possibility for additional borrowers to qualify for debt forgiveness, as these periods will now be included in the required 25 years of eligible payments.
Biden's Student Loan Forgiveness Plan
Online Application
The Biden administration's first student loan forgiveness plan introduced an online application, making it easier for borrowers to request relief. The application portal has been operational since October 2022 and has already processed millions of applications.
SAVE Plan Implementation
The Department of Education will fully implement the remaining benefits of the Simplifying Access to Repayment (SAVE) Plan in July 2024. This plan will further reduce monthly payments from $10 to $40 for borrowers with federal student loans.
Biden Administration's Student Loan Relief
Since October 2021, the Biden administration has made significant progress in addressing the issue of student loan debt. The administration has canceled $146 billion in student loan debt for over 1.6 million borrowers through various programs.
Most recently, the Biden-Harris Administration announced the approval of an additional $58 billion in student loan debt relief for 777,000 borrowers. This relief is targeted towards borrowers with total and permanent disabilities, as well as those who attended Corinthian Colleges or ITT Technical Institutes.
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