Student loan forgiveness victory as Biden cancels debt for 800K borrowers

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Student loan forgiveness victory as Biden cancels debt for 800K borrowers
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The Biden administration will automatically forgive $39 billion in student debt for 804,000 borrowers.

scored a crucial victory on Friday when his administration announced that it would automatically cancel the debt of hundreds of thousands of borrowers.

The debt cancellation, which will benefit 804,000 student loan borrowers, will add up to a total of $39 billion in relief. It's made possible as a result of previous actions undertaken by the federal government to fix"longstanding failures in the student loan programs," according to the Department of Education.

Under the new repayment plans, borrowers on most plans are entitled to have their debt forgiven after 20 years of payments, depending on what and when they borrowed, and their plan type. U.S. President Joe Biden arrives at of 10 Downing Street in central London, on July 10, 2023. The Biden administration is forgiving student loans for over 800,000 borrowers.According to the Biden administration, the move goes to correct years during which borrowers who were entitled to debt forgiveness often didn't get it, as the payments that should have moved them towards becoming debt-free weren't accounted for.

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