Another 206000 student loan borrowers eligible for forgiveness under new plan
Relief for borrowers with federally held loans
Expands income eligibility for cancellation
WASHINGTON (AP) — The Biden administration is canceling student loans for another 206000 borrowers as part of a new repayment plan that offers a faster route to forgiveness.
The Education Department announced the expansion of the Income-Driven Repayment (IDR) plan on Tuesday, which lowers monthly payments for undergraduate loans and forgives the remaining balance after 20 or 25 years, depending on the plan.
The new plan will make IDR more generous by counting all payments toward forgiveness, regardless of the amount or whether the payments are made on time.
It will also forgive loans after 10 years of payments for borrowers with an original balance of $12,000 or less.
The changes will be applied automatically to borrowers who are already in IDR plans.
Borrowers who are not yet in IDR can apply at StudentAid.gov.
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