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On Friday, the Education Department announced it would automatically forgive student loans for more than 800,000 borrowers. This comes after last month’s Supreme Court decision against President Joe Biden’s student loan forgiveness plan. Here’s what today’s announcement entails, how to know if you qualify for relief, and how you can get it.
Who qualifies for relief?
Today’s student loan forgiveness announcement is for longtime borrowers on income-driven repayment plans. Compared to other types of loans, income-driven repayment plans are based on a borrower’s income, not the amount borrowed. This move is basically a one-time “fix” for borrowers who “fell through the cracks” due to inaccurate payment counts in the past, according to a statement from Education Secretary Miguel Cardona.
If you’re a student loan borrower on an income-driven repayment plan who has made at least 20 years of payments, you should see your remaining balances wiped out in coming weeks.
How to see your debt relief
Eligible borrowers started to be notified as of July 14. If you believe you qualify for this forgiveness, you should see your loan balances automatically discharged or reduced in the coming weeks. Again, today’s announcement is designed for those on income-driven repayment plans who have struggled to eliminate their debt despite two decades of payments.
For the millions of borrowers not on income-driven repayment plans, here’s our guide to getting your debt repayment plan in order and exploring other loan forgiveness options that may still be on the table.
