Today, the Department of Education announced that 800,000 borrowers will have $39 billion in federal student loans discharged as a result of a one-time payment adjustment.
now to some welcome news for thousands of people struggling under a mountain of student loan debt. the biden administration announcing a $39 billion program for debt relief. promised to find a path to loan forgiveness after the u.s. supreme court struck down his original plan. explain this new plan. this program is meant to fix what the biden administration called historical inaccuracies from some loan servicers for those who have been part of the income driven loan repayment. basically what it is going to impact is those who have paid down their loans for about 20 to 25 years who should have
Today, the Department of Education announced that 800,000 borrowers will have $39 billion in federal student loans discharged as a result of a one-time payment adjustment.
up to $39 billion in total forgiveness. this is one of many steps that the biden administration says they are making to try to deal with this significant issue of crushing student loan debt, that real limits an individual s ability to have mobility and employment, to start a family, to purchase a home and it is one that the administration says there will be additional steps to come. and, mike, those additional steps to come, we can know that as of right now that is something that people won t have to register and request, but rather will happen automatically? reporter: that s right. those who qualify this will be notified by the department of education and it is also something where they have to work through some of the private loan servicers. one issue here, jose, is that private loan servicers perhaps put somebody into forbearance if they missed a payment or did not make a full payment, when the department of education says they should not have done so, which made them eligible f