WASHINGTON, July 14-U.S. President Joe Biden’s administration will cancel$ 39 billion in pupil debt for further than 804,000 borrowers, the Education Department said on Friday, describing the relief as the result of a” fix” to income- driven prepayment (IDR) plans. Borrowers will be eligible for remission if they’ve made either 20 or 25 times of yearly IDR payments, the department said. The IDR program caps payment conditions for lower- income borrowers and forgives their remaining balance after a set number of times.” These borrowers will join the millions of people that my administration has handed relief to over the once two times – performing in over$ 116 billion in loan relief to over 3 million borrowers under my administration,” Biden said in a statement. The department said the relief addresses what it described as” literal inaccuracies” in the count of payments that qualify toward remission under IDR plans.” For far too long, borrowers fell through the cracks of a broken system that failed to keep accurate track of their progress towards remission,” Secretary of Education Miguel Cardona said. Biden has said he’ll pursue new measures to give pupil loan relief to Americans after the Supreme Court blocked his plan to cancel hundreds of billions of bones.
in debt. The Education Department has launched a nonsupervisory” rulemaking” process to pursue his$ 430 billion loan relief plans. That process is anticipated to take months. Friday’s fairly lower relief falls under a separate, payment count adaptation program that the Biden administration blazoned in April 2022, the department said. In a statement, Vice President Kamala Harris said the administration” will continue to fight to make sure Americans can pierce high- quality postsecondary education without taking on the burden of ungovernable pupil loan debt.” Reporting by Juby Babu in Bengaluru, and Rami Ayyub and Paul Grant in Washington; Editing by Chizu Nomiyama, Frances Kerry and Jonathan Oatis