Chicago – August 08, 2024
The Education Department is getting closer to delivering student-loan forgiveness to millions of borrowers.
Last week, the department announced it would be sending emails to all student-loan borrowers with at least one outstanding federal loan to update them on President Joe Biden’s plan to cancel student debt using the Higher Education Act of 1965.
Expected to benefit more than 30 million borrowers, the plan would cancel some or all student debt for:
- Borrowers who owed more than they did when they first entered repayment
- Borrowers who entered repayment at least 20 years ago
- Borrowers who would be eligible for forgiveness through programs like Public Service Loan Forgiveness or income-driven repayment but haven’t yet applied
- And borrowers who attended schools that left them with too much debt compared to post-graduation earnings.
The emails sent last week also specified an August 30 deadline for borrowers to opt out of the relief by contacting their servicers. They may choose to opt out for a number of reasons, including avoiding potential state tax liabilities.
