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Act II: WH announces that it has wiped $39B in student loan debt for more than 800k students as war over loan relief finds potential workarounds

Weeks after the Supreme Court ruled that Biden cannot mass forgive student loans, the White House has announced a ‘workaround’ likely one of many effective immediately.

According to an announcement from the White House, the Department of Education has been instructed to inform more than 800k students about a change that was recently made. This change is in relation to anyone who has used an income drive repayment plan. This plan of course erases student debt after payments are made for either 20 or 25 years.

The announcement notes that the reason why the debt is being forgiven is because changes were made to better reflect accurate payment history in accordance with the plan.

“The Department will continue to identify and notify borrowers who reach the applicable forgiveness thresholds (240 or 300 qualifying monthly payments, depending on their repayment plan and type of loan) every two months until next year when all borrowers who are not yet eligible for forgiveness will have their payment counts updated,” the department said.

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