Federal government cancels $ 2 billion more in student loans
The federal Department of Education announced another round of student loan cancellations earlier this month.
Borrowers eligible for this round of forgiveness are automatically notified by email, according to the Department of Education. The notices are being released now.
The new cycle will ultimately write off $ 2 billion in loans, according to Yahoo Money.
The remission is part of an overhaul of the civil service loan forgiveness program, which aims to provide loan relief to teachers, social workers, firefighters and other public servants, according to Fortune.
People eligible for the program get their loans canceled after 10 years of payment, but poor communication and paperwork errors have left many people missing out on the benefits they are entitled to, according to NPR.
In addition to providing immediate relief to many borrowers, the Department of Education has also fine-tuned the application process for the program in the future to make it easier for people to obtain forgiveness.
Education Secretary Miguel Cardona said in a tweet that approximately 30,000 people will receive relief under the current round of forgiveness, including members of the military and veterans.
The federal government has forgiven billions of dollars in student loans in recent months. Since taking office, President Joe Biden has announced plans to write off more than $ 11 billion in student loan debt, according to Fortune.
The Education Department previously announced it would write off $ 5.8 billion in student loan debt for 323,000 borrowers with total and permanent disabilities that prevent them from working, Fortune said.
The ministry also provided relief to borrowers who attended defunct schools that engaged in deceptive or illegal practices. This remission round has benefited more than 188,000 people with debt of $ 2.6 billion.
Most borrowers still won’t see any relief, Fortune said. The multiple rounds of forgiveness to date represent a fraction of the overall U.S. student loan debt, which totals nearly $ 1.8 trillion and is held by 43 million people.
A broader student loan relief effort was left out of the major spending bill Democrats in the House of Representatives passed earlier in November, according to CNBC. Supporters of bigger measures remain hopeful, saying Biden can write off more debt with executive action.