You’ve probably heard that the Biden administration’s sweeping plan to forgive a portion of government student loans was blocked by the Supreme Court. But it turns out some of the loans will be forgiven.
This week the U.S. Department of Education began the process of discharging 804,000 student loans that meet certain criteria. To qualify, the borrower must have been enrolled in the Department of Education’s income-driven repayment (IDR) plan and have been making payments for at least 20 years.
The White House announced the forgiveness plan in July after the high court ruled the administration’s unilateral move to forgive debt without consulting Congress was unconstitutional.
Under the plan announced last month, the government will write off approximately $39 billion in student loan debt.
“I have long said that college should be a ticket to the middle class – not a burden that weighs down on families for decades,” Biden said as he announced the plan.
Borrowers will qualify for forgiveness if they have made payments for 20 or 25 years depending on when a borrower first took out the loans, the type of loan they have, and the income-driven repayment plan they are on.
Eligible borrowers should have received notification of their loan forgiveness by mail. Government officials will not call borrowers, so if someone calls and claims to be able to help you with your loan, it’s a scam.
The Department of Education said qualifiers include people with Direct Loans or Federal Family Education Loans held by the department, including Parent PLUS loans of either type, who have reached the necessary forgiveness threshold as a result of receiving credit toward IDR forgiveness.
Everyone else with a student loan must resume payments by October.