More than 800,000 federal student loan borrowers will have their debts automatically forgiven, the Biden Administration said Friday, citing administrative deficiencies that failed to account for some of the borrowers’ payments.
US President Joe Biden addresses a joint press conference with Finland's President after the ... [+]
The Department of Education will automatically cancel future loan payments for borrowers affected by the errors whose debts were supposed to be forgiven after 20 or 25 years, depending on their plan.
Due to what the agency called “administrative failures,” some of the borrowers’ payments were not counted toward the promised expiration date
The loans will be “automatically discharged in the coming weeks,” the Department of Education said in a statement.
The move comes after the Supreme Court earlier this month tossed President Joe Biden’s signature student-loan forgiveness program that promised to forgive up to $20,000 in debt for 43 million federal borrowers.
This is a developing story and will be updated.