The Biden-Harris Administration plans to eliminate $39 billion in federal student loans for more than 804,000 borrowers.
Four things to know:
1. The automatic discharges are meant to resolve mistakes under the federal student loan program in which qualifying payments for income-driven repayment plans that should have moved borrowers closer to forgiveness were not accounted for, the U.S. Department of Education said July 14.
2. To be eligible for forgiveness, borrowers must have accumulated the equivalent of either 20 or 25 years of qualifying months.
3. The cancellation applies to individuals with direct loans or Federal Family Education Loans provided by the Education Department.
4. The announcement comes after the Supreme Court struck down President Joe Biden's plan to forgive more than $400 billion in student loan debt.