In a significant move, the Biden administration has announced that hundreds of thousands of borrowers who have diligently paid their student loans for decades will finally have their debt canceled^1^. An impressive $39 billion in student-debt relief will be provided to over 804,000 borrowers, bringing much-needed respite to those long burdened by their loans^2^.
A Long-Awaited Resolution
This decision comes in response to years of mounting concerns voiced by borrowers and advocates alike. Despite existing programs that allow for debt forgiveness after 20 or 25 years of consistent monthly payments, many borrowers found themselves still grappling with their loans even after decades of repayment^3^. The Department of Education acknowledged last year that servicer practices often hindered progress towards forgiveness, prompting a review of borrowers’ accounts to rectify this issue^3^.
Eligibility for Relief
Under this relief plan, borrowers who have made at least 20 years of qualifying payments will be eligible for debt cancellation^4^. By initiating this review process, the agency aims to rectify the shortcomings and ensure that everyone rightfully receives the forgiveness they deserve^5^.
This momentous announcement has been met with widespread appreciation as it aims to correct the flaws within a broken system. Miguel Cardona, the Secretary of Education, expressed his determination to rectify past administrative failures and provide borrowers with the relief they have long awaited^6^.