“For far too long, borrowers fell through the cracks of a broken system that failed to keep accurate track of their progress towards forgiveness,” Education Secretary Miguel Cardona said in a statement.
The relief is being provided as part of an adjustment that the administration announced in April 2022.
Cardona said the plan will ensure everyone receives the forgiveness they deserve in addressing “past administrative failures.”
The Education Department said the relief is being provided on income-driven repayment plans, in which the federal government cancels remaining balances for the borrower after they have made their payments for 20 or 25 years.
The department said the “fixes” will more accurately count monthly payments that qualify under the plans, and it will notify borrowers who are eligible for the relief in the upcoming days.
The move marks the administration’s latest step since President Biden’s student loan forgiveness plan was struck down by the Supreme Court.
“We will not stop there. Last month, President Biden announced we are pursuing an alternative path to provide relief through the Higher Education Act, and we finalized our new income-driven repayment plan – which will cut monthly payments in half for undergraduate loans,” Vice President Harris said Friday.
“Our Administration will continue to fight to make sure Americans can access high-quality postsecondary education without taking on the burden of unmanageable student loan debt,” she added.
The Hill’s Jared Gans digs further here.
