Some Hoosiers with student debt will soon be receiving help.
The Biden-Harris Administration has approved 804,000 borrowers for $39 billion in federal student loans for automatic discharge this summer.
Eligible borrowers will not have to take any action to receive this income-driven repayment forgiveness.
In Indiana, 19,470 borrowers will receive $932.80 million in IDR forgiveness in the coming weeks.
An income-driven repayment or IDR plan sets a borrower’s monthly student loan payment at an amount intended to be affordable based on that borrower’s income and family size.
IDR plans also offer forgiveness of any remaining loan balance after borrowers make 240 or 300 monthly payments, which corresponds to 20 or 25 years.
Before the Biden-Harris Administration’s improvements to the IDR forgiveness program, qualifying payments that should have moved borrowers on IDR plans closer to forgiveness were not counted properly.
Now all borrowers have an accurate count of the number of monthly payments that qualify toward IDR forgiveness and are discharging the loans of borrowers who have met the requirements.
For more information about these discharges visit ed.gov/news
