The Biden administration has announced $39 billion in student debt relief.
The Education Department announced 804,000 borrowers will have their student debt wiped away in the coming weeks due to administrative fixes that more accurately count qualified monthly payments.
There are currently several different kinds of income-driven repayment plans for borrowers with federal student loans.
The plans base payments on a borrower’s income and family size, regardless of their total outstanding debt.
After reaching a set forgiveness threshold of 20 or 25 years, a borrower’s remaining balance is then wiped away.
Student loan repayments resume in October after a yearslong pause during the pandemic.
The Supreme Court last month struck down Biden’s loan forgiveness program to provide millions of borrowers up to $20,000 in one-time federal student debt relief.
Photo Creator: Win McNamee | Credit: Getty Images
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