Partial Loan Forgiveness for Remaining Debt with Up to 25 Years Repayment Based on Income
The U.S. administration under Joe Biden has initiated a student loan forgiveness measure targeting 800,000 college students. This move aims to win the votes of younger generations ahead of next year's presidential election, and the populism controversy surrounding this loan forgiveness measure is expected to continue.
On the 15th (local time), according to local media including ABC News, Americans who have federal student loans began receiving emails from loan agencies starting the day before, informing them that their student loans have been forgiven.
The 800,000 individuals eligible for this student loan forgiveness are expected to receive notification letters about the loan forgiveness within the next few weeks. Among them, 614,000 will have their remaining loans fully forgiven, while the rest will have only partial loan forgiveness applied.
This measure follows the student loan forgiveness plan announced by the Biden administration last month. The core of the plan is that under an income-driven repayment plan, if borrowers repay their loans over the next 20 or 25 years, the federal government will forgive the remaining loan balance.
Previously, President Biden announced a large-scale student loan forgiveness policy in November last year ahead of the midterm elections. The plan allows up to 43 million people to have up to $20,000 forgiven per person. This was a move aimed at winning the votes of young voters ahead of the 2024 presidential election.
After the federal Supreme Court invalidated the policy in June, stating that "the government does not have the authority," the Biden administration announced a follow-up measure drastically reducing the loan forgiveness target to 800,000 people to fulfill the campaign promise. Although conservative groups recently filed a lawsuit to halt the implementation, it was dismissed the day before due to lack of standing.
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