Biden admin moves to fix "longstanding failures" in student loan programs [View all]
The Department of Education on Tuesday announced new steps to address "longstanding" and "inexcusable failures" in federal student loan programs.
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State of play: The department, via rulemaking, will review how income-driven repayment (IDR) plans are administered, adding that it has found "significant flaws that suggest borrowers are missing out on progress toward IDR forgiveness," according to a press release.
It is also moving to end "forbearance steering," which happens when loan services place borrowers into forbearance without giving adequate information about their alternatives, including IDR plans, which make it easier for borrowers to pay back loans if their debt is high when compared to their income.
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The department said that their actions will result in the immediate student loan debt cancellation of at least 40,000 borrowers under the Public Service Loan Forgiveness Program, and thousands more will become eligible for loan discharge under IDR.
https://www.axios.com/biden-education-student-loan-debt-failures-4e4ee29f-7677-4bf5-b0b7-bf03e58c5cee.html
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