The Education Department said on Friday that the administration of U.S. President Joe Biden will forgive $39 billion in student loans for more than 804,000 students.
The department attributed the relief to a “fix” to income-driven repayment (IDR) plans.
According to the agency, borrowers will be qualified for forgiveness after 20 or 25 years of consistent IDR payments.
Lower-income borrowers’ monthly payments are capped under the IDR scheme, and after a certain period of time, the remaining sum is forgiven.