Student loan borrowers will get help after an NPR report and years of complaints
Source: NPR
The U.S. Department of Education says it will retroactively help millions of federal student loan borrowers who have been hurt and held back by its troubled income-driven repayment (IDR) plans, calling the plans' longstanding flaws and mismanagement "inexcusable."
Tuesday's announcement comes after years of complaints and lawsuits and, most recently, an NPR investigation that revealed that these IDR plans, which promise affordable monthly payments as low as $0 and loan forgiveness after 20-25 years, have been badly mismanaged by the department and the loan servicing companies it employs.
"Today, the Department of Education will begin to remedy years of administrative failures that effectively denied the promise of loan forgiveness to certain borrowers enrolled in IDR plans," U.S. Education Secretary Miguel Cardona said in a statement.
The department estimates that the changes will result in immediate debt cancellation for at least 40,000 borrowers who will now qualify for Public Service Loan Forgiveness. In addition, several thousand borrowers will now qualify for debt cancellation under IDR.
Read more: https://www.npr.org/2022/04/19/1093310151/student-loans-income-based-repayment
Walleye
(31,017 posts)maxsolomon
(33,327 posts)40,000 people with immediate forgiveness.
Seems like Biden is delivering above and beyond his campaign promises. It's Congress that is underdelivering.
Bantamfancier
(366 posts)the IRS taxes you on the amount forgiven. Please fix that part too Joe.
TheProle
(2,167 posts)rateyes
(17,438 posts)provision into law with the infrastructure bill.
Bantamfancier
(366 posts)It depends on the type of loan and the repayment plan. Only in certain cases is the amount non taxable. Needs to be simpler and cover all educational loans.
riversedge
(70,204 posts)be included in this forgiveness. IMHO
turbinetree
(24,695 posts)loans forgiven.......like the thousand of airline employees that got laid off and went back to college......or to finish there degree program.....