WASHINGTON - Today, the Biden administration announced the cancellation of $4.9 billion in student debt for roughly 74,000 borrowers. This move comes as a targeted relief effort after the Supreme Court blocked a more expansive $400 billion loan forgiveness plan.
The debt forgiveness is particularly beneficial for public servants including teachers and nurses with ten years' tenure, addressing long-term repayment challenges faced by these individuals. As part of revisions to the income-driven repayment (IDR) and Public Service Loan Forgiveness (PSLF) programs, nearly 30,000 individuals will benefit from loan cancellations due to servicers' failures in tracking payments correctly.
In addition to this, the administration has enhanced the Saving on a Valuable Education Plan earlier this week. This plan expedites debt forgiveness for those consistently paying off initial loans up to $12,000 for over a decade, providing further relief for borrowers.
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