A total of around $3.1 billion student loan debt will be forgiven by the Federal State in Texas following U.S. Department of Education’s review of the student loans which started last year.
Student Loan Forgiveness Of Nearly 64,000 Texans ‘Not Part Of President Joe Biden’s Forgiveness Plan’, US Department Of Education Says
Photo From: Washington Times
Student Loan Forgiveness, Not Part Of President Biden’s Plan
A new wave of Texans will benefit from U.S. Department of Education student loan forgiveness. Around 64,000 Texans with an average of $48,000 per borrower were said to be eligible for the student loan forgiveness.
Based on a report, the U.S. department of Education had clarified that the step is not related to President Biden’s own student loan forgiveness plan which was initially blocked by the U.S. Supreme Court way back in June.
Based on the U.S. Department of Education’s review last year, they had identified 804,000 borrowers across the country who could be eligible for the student loan forgiveness. The total debt to be forgiven would amount to $39 billion.
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Student Loan Forgiveness: Only Those With 2-Decade Old Debts
The U.S. Department of Education also added that only those who had 2-decade old debts will receive the student loan forgiveness benefit.
The initiative was done to cancel out debt which should have been done earlier, except that there had been ‘past administrative failures’, the U.S. Department of Education added.
All the beneficiaries will have their student loan balance to be automatically cancelled within 30 days.
“By fixing past administrative failures, we are ensuring everyone gets the forgiveness they deserve,” Miguel Cardona, the U.S. Department of Education Secretary said in a report.
The initiative was set to help out borrowers from low income backgrounds and to help them ease the burden of student debt after decades.
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