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Tue Apr 19, 2022, 04:34 PM

Student loan borrowers will get help after an NPR report and years of complaints

Source: NPR

The U.S. Department of Education says it will retroactively help millions of federal student loan borrowers who have been hurt and held back by its troubled income-driven repayment (IDR) plans, calling the plans' longstanding flaws and mismanagement "inexcusable."

Tuesday's announcement comes after years of complaints and lawsuits and, most recently, an NPR investigation that revealed that these IDR plans, which promise affordable monthly payments as low as $0 and loan forgiveness after 20-25 years, have been badly mismanaged by the department and the loan servicing companies it employs.

"Today, the Department of Education will begin to remedy years of administrative failures that effectively denied the promise of loan forgiveness to certain borrowers enrolled in IDR plans," U.S. Education Secretary Miguel Cardona said in a statement.

The department estimates that the changes will result in immediate debt cancellation for at least 40,000 borrowers who will now qualify for Public Service Loan Forgiveness. In addition, several thousand borrowers will now qualify for debt cancellation under IDR.

Read more: https://www.npr.org/2022/04/19/1093310151/student-loans-income-based-repayment

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Reply Student loan borrowers will get help after an NPR report and years of complaints (Original post)
TheProle Apr 2022 OP
Walleye Apr 2022 #1
maxsolomon Apr 2022 #2
Bantamfancier Apr 2022 #3
TheProle Apr 2022 #5
rateyes Apr 2022 #6
Bantamfancier Apr 2022 #7
riversedge Apr 2022 #4
turbinetree Apr 2022 #8

Response to TheProle (Original post)

Tue Apr 19, 2022, 04:37 PM

1. I sure hope everyone of those 40,000 will get out and vote in November

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Response to TheProle (Original post)

Tue Apr 19, 2022, 04:40 PM

2. Yet more debt relief!

40,000 people with immediate forgiveness.

Seems like Biden is delivering above and beyond his campaign promises. It's Congress that is underdelivering.

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Response to TheProle (Original post)

Tue Apr 19, 2022, 04:50 PM

3. Let's not forget that

the IRS taxes you on the amount forgiven. Please fix that part too Joe.

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Response to Bantamfancier (Reply #3)

Tue Apr 19, 2022, 05:42 PM

5. Great point and an excellent reminder

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Response to Bantamfancier (Reply #3)

Tue Apr 19, 2022, 06:38 PM

6. It has been fixed already. Joe signed that

provision into law with the infrastructure bill.

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Response to rateyes (Reply #6)

Tue Apr 19, 2022, 06:48 PM

7. Not really.

It depends on the type of loan and the repayment plan. Only in certain cases is the amount non taxable. Needs to be simpler and cover all educational loans.

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Response to TheProle (Original post)

Tue Apr 19, 2022, 05:41 PM

4. Caretakers--such as those to need to care -sometimes for years -for elderly parents should

be included in this forgiveness. IMHO

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Response to TheProle (Original post)

Tue Apr 19, 2022, 06:58 PM

8. I think that anyone that took out loans after 9/11 and the 2008 bank fiasco should have there

loans forgiven.......like the thousand of airline employees that got laid off and went back to college......or to finish there degree program.....

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