The Education Department Announces More Than 40,000 Borrowers Will Have Their Student Debt Erased

If you’ve been waiting for some relief financially and more specifically with your student loans, the time may finally be here for you.

As you may know, one of Biden’s key messages when he was running for President was that he wanted to erase or cancel student loans for borrowers.

While that entire system has still been a work in progress, thousands of borrowers have already seen relief in the form of cancelled student loans.

And now, more than 40,000 borrowers will have their student debt erased under this next wave of cancellations.

Earlier today, the Biden administration announced they will erase student debt of more than 40,000 borrowers.

The student loan borrowers will have debt canceled under eligibility for discharge under the Public Service Loan Forgiveness program.

That also means that 3.6 million more will move closer towards forgiveness as well.

Under this new wave of forgiveness, The Education Department will give borrowers retroactive credit for “forbearance steering”.

This is where student loan servicers pushed borrowers into unnecessary interest-accruing forbearance.

“Student loans were never meant to be a life sentence, but it’s certainly felt that way for borrowers locked out of debt relief they’re eligible for,” said U.S. Secretary of Education Miguel Cardona said in a press release.

“We wanted to act as quickly as possible to address these problems, but we expect these figures to only grow as we continue to analyze and implement these solutions,” Education Undersecretary James Kvaal said on a call with reporters.

In addition to having borrowers debt cancelled under the PSL program, any borrower who hits the 20-year or 25-year mark for monthly payments after this revision will have their loans canceled automatically.

While this still doesn’t mean student loan forgiveness for everyone, it is another hunk of people that could really use this right now.