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TAKEAWAYS KEY
- As its last student loan forgiveness action, President Joe Biden's administration forgave debt for 8,650 borrowers.
- The Income-Driven Repayment Plan was re-counted in this round, and more than $650 million went to the 4,550 borrowers.
- DeVry University borrowers also received a discharge of their loans.
President Joe Biden's administration forgave the debt of 8,650 borrowers Thursday in its last student loan forgiveness action before it leaves office.
The Department of Education has announced that it will forgive more than 600 million dollars in student loans for those borrowers who are enrolled in an Income-Based Repayment plan (IBR). Additional relief is also available for students whose school engaged in misconduct.
This week, the department announced multiple forgiveness rounds as it prepared for a change in administration. The department announced that this is the last and 33rd student loan forgiveness by the Biden Administration. This amounts to $188.8 Billion in total forgiveness for 5.3 Million borrowers.
Who Received Relief?
More than 4,550 borrowers enrolled in the IBR plan were granted forgiveness under the plan's rules. This was part of the administration's clerical adjustments to accounts that did not accurately track borrowers' progress toward forgiveness.
The department also said that some borrowers affected by servicer changes in 2024 may see their number of monthly payments increase in the next few weeks. It is crucial to note that borrowers who are part of income-driven plans may be eligible for forgiveness after making a set number of payments per month, depending on the type of plan and degree earned.
DeVry University misrepresented its placement rate, according to the department. The school allegedly committed fraud by misleading 4,100 students.
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