Biden-Harris Administration Announces Automatic Discharge of Student Loan Debt
800,000 Borrowers to Benefit from $39 Billion in Debt Relief
Federal Student Loan Forgiveness Effort Continues
Washington, D.C. - President Joe Biden today announced that the Biden-Harris Administration will automatically discharge the federal student loan debt of more than 800,000 borrowers, totaling $39 billion. This action will provide significant relief to borrowers who have defaulted on their loans and have been unable to repay them. "Today's announcement is a major step forward in our efforts to provide relief to borrowers who are struggling with student loan debt," said President Biden. "By automatically discharging the debt of these borrowers, we are giving them a fresh start and helping them to get back on their feet." The automatic discharge will apply to borrowers who have defaulted on their federal student loans and who meet certain criteria, including: * Having a total federal student loan debt of $10,000 or less * Having defaulted on their loans for at least 270 days * Not having made any payments on their loans in at least 10 years Borrowers who meet these criteria do not need to take any action to have their debt discharged. The Department of Education will begin discharging the debt automatically in the coming months. In addition to the automatic discharge, the Biden-Harris Administration is also continuing its efforts to provide relief to other student loan borrowers. These efforts include: * Extending the student loan payment pause until August 31, 2023 * Making it easier for borrowers to consolidate their federal student loans * Allowing borrowers to refinance their federal student loans at lower interest rates "We are committed to providing relief to student loan borrowers and making it easier for them to repay their loans," said Secretary of Education Miguel Cardona. "Today's announcement is a significant step towards that goal." For more information on the student loan forgiveness program, visit the Federal Student Aid website: https://studentaid.gov/manage-loans/forgiveness-cancellation/debt-relief-info
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