If you have outstanding student loan debt, be sure to check your email in the coming days. The Biden Administration directed the Department of Education to email tens of millions of people with outstanding student loans, informing them of potential options to forgive their debt.
They will also be given the option to opt out of future debt relief programs and must contact their loan service provider by August 30 if they wish to do so.
The latest proposal could see those who owe more money than they originally borrowed due to “runaway interest” have their loans forgiven. The rule, which could take effect in the fall, would “permit automatic relief of up to $20,000 of the amount by which a borrower’s loans currently exceed what they owed upon starting repayment,” Fox Business reported.
In addition, Secretary of Education Miguel Cardona would have the authority to “forgive the full amount by which a borrower saw their balance grow after entering repayment if the borrower is enrolled in any Income-Driven Repayment plan and has annual income equal to or below $120,000 if they are single or $240,000 if they are a married couple that files taxes jointly.”
The latest proposal could provide debt relief to an estimated 25 million borrowers.
“These rules, if finalized as proposed, would bring the total number of borrowers eligible for student debt relief to over 30 million, including borrowers who have already been approved for debt cancellation by the Biden-Harris Administration over the past three years,” the Department of Education said in a statement.
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