Will Federal Student Loan Forgiveness Come Through IDR Reform

Veronica Charnell Media

Photo Courtesy of Nerdwallet.comNerdwallet.com

The Pandemic caused the Federal Government to review a failed student loan system

Imagine making student loan payments for over 15 years, and instead of being cleared for the remaining balance you just continue making payments on your loan longer than you were supposed to. Well, that is exactly what has happened to millions of Federal Student Loan Borrowers.

The Department of Education announced last Tuesday that it's retroactively fixing "longstanding failures" in federal student loan programs like income-driven repayment (IDR) to bring millions of Americans closer to debt forgiveness. The IDR program limits how much the monthly payments will be based on the borrower's overall income and family size. After Having a repayment plan of 20 to 25 years, the remaining balance is supposed to be discharged. Recent reports showed the Federal Student Loan system needs to be reformed. Some borrowers were already qualified for forgiveness under the IDR program.

Now, the Federal Student Aid office is conducting a "one-time account adjustment" that will bring about 3.6 million IDR borrowers months or years closer to achieving debt forgiveness, and several thousand will be immediately eligible. There are mixed emotions about President Biden clearing all student loan debt. Take a moment and imagine, half of those 3.6 million IDR borrowers who should have been cleared from student loan debt years ago are still giving the government extra money they can use to pay their bills or put it in their savings account. Without investigating this issue how would we have known about this hole in the Department of Education system?

According to Educationdata.org, Black and African American student borrowers have suffered the most from student loan debt and they are most likely to struggle financially due to student loan debt, with 29% making monthly payments of $350 or more.

It went on to say only 54% of all student loan debt is held by White and Caucasian student borrowers.

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Entertainment & Lifestyle Journalist who loves to produce quality content in Entertainment, Lifestyle, Wellness & Business. Occasionally, I write about the Government Sector. On IG: @iam_ladyveronica

Greenville, NC

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