Gather round people there’s something very important students and student borrowers in America need to know. According to reports, the Education Department is readying its latest tranche of debt relief for students in the U.S. There are a few bullet points to this announcement so follow along below.
- There are some changes coming to what is known as the income-driven repayment plan.
This one right now anyway would largely probably have to do with previous generations of college students. According to the DOE, the plan allows for people to have their debt forgiven after 20 or so years so long as they’ve kept up with whatever their agreed payment was. Thousands of people are expected to receive notification of their debt relief in the coming weeks assuming they are eligible under the plan. In a bad look for the government, next to nobody (largely) has ever gotten relief under this plan despite that being the entire point of the plan, to begin with.
2. When the administration first began rolling out this plan earlier this summer it sent out notifications to eligible students. More than 804,000 student borrowers were initially eligible and pushed over the initial 20 year payment mark entitling them to loan forgiveness under the plan. People this is not the time to forget to check your mail.
3. Conservative groups are already attempting to stop this the same way they did Biden first attempts.
They are trying to stop a payment plan that has always existed because it is now being used as it was intended which was to provide relief after a set amount of time.