Biden Cancels $2 Billion of Student Debt Loans for Americans!

A new round of federal student loan payments will be canceled later this month, the Education Department announced earlier this month.

The Education Department also stated that those eligible are now being notified via email.

Earlier, Yahoo Money reported that $2 billion in loans will be canceled under the new round.

According to Fortune, the program will be revised as part of the relaunch of the Public Service Loan Forgiveness program. Teachers, social workers, firefighters, and other public servants will benefit from this program.

NPR disclosed that For those who qualify after they made payments for 10 years, their loans will be forgiven. Meanwhile, inadequate communication and faulty paperwork have left many unable to qualify.

To help, the Education Department simplified application procedures so that applicants could submit their applications more easily.

Several thousand people, including military personnel and veterans, will benefit from the contemporary round of write-offs, Education Secretary Miguel Cardona announced in a tweet.

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Fortune stated that President Biden had pledged to cancel more than $11 billion in student loans since he took office.

In addition, according to Fortune, the Education Department is planning to forgive $5.8 billion in student loan debt for 323,000 borrowers who are permanently disabled, and unable to work.

Likewise, foreclosure relief was granted to students who attended schools that used illegal or deceptive methods.

Over 188,000 people have benefited from the current round of write-offs, resulting in a $2.6 billion reduction in debt.

Still, Fortune reported that the vast majority will not see much relief.

This is because these write-offs only represent a fraction of the nation’s student loan debt totaling $1.8 trillion. Approximately 43 million Americans have student loan debt.

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