The Education Department has announced a new student loan relief plan that includes forgiving excessive interest, discharging long-standing balances, and providing relief for borrowers who attended now-closed or insolvent institutions. The plan aims to address the reasons behind the struggles with student loan debt.
The provisions of the plan include forgiving excessive interest that has accrued, discharging balances that have been in repayment for 20 years or more and relief for borrowers who attended now-closed or insolvent institutions.
The relief provisions will soon be open for a public comment period where the administration will consider revisions to its proposal before it goes into effect. Some provisions are expected to roll out as early as this fall, the administration said. Interest accrues daily on student loans and some borrowers have interest rates as high as 8%. As a result, many borrowers wind up with balances higher than what they initially took out for school, despite making regular payments.
Some 25 million borrowers stand to benefit from their interest balances being reduced if the plan goes into effect as proposed. An estimated 23 million of those borrowers will have their entire balance growth forgiven, according to the administration.The new plan will allow the administration to use available data to identify and automatically clear balances for these borrowers as they are eligible, without borrower action.
Student Loan Relief Plan Forgiveness Interest Repayment Education Department
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Ohio’s Board of Education expresses budget crisis following education department overhaulTo make up some of the money, the board proposed raising its five-year teacher licensing fees from $200 to $325 and cutting staffing.
Read more »
Administrators lead the push for AI education in Orange County Department of EducationKunal Dalal and Wes Kriesel in the Orange County School District are leading the push for artificial intelligence in public education.
Read more »
Education Department sparks new GOP anger as Cardona pivots on financial aid blunderEducation Secretary Miguel Cardona has said some schools were 'still not fully prepared to receive' key financial aid data from his agency but the Education Department hasn't sent most of it.
Read more »
San Antonio universities start to receive student FAFSA data from Department of EducationThe priority deadline for student financial aid applications in Texas is April 15.
Read more »
Alabama Department of Education Launches 'Every Day Counts' Initiative to Combat Chronic AbsenteeismThe city of Birmingham, Birmingham City Schools, and the Housing Authority of the District of Birmingham (HABD) launched the 'Every Day Counts' initiative...
Read more »
Education Department accused of ‘malicious negligence' amid FAFSA issuesAmid ongoing FAFSA issues, criticism of the U.S. Department of Education has reached a fever pitch.
Read more »