The Joe Biden student loan forgiveness program is planning to cancel $39 billion in student debt for over 804,000 borrowers, according to a recent announcement from the Education Department, per Reuters.

This debt relief initiative directly results from adjustments made to income-driven repayment plans.

Under the new guidelines, borrowers making 20 or 25 years' monthly IDR payments will be eligible for forgiveness.

The IDR program sets a cap on payment requirements for lower-income individuals and forgives the remaining balance after a specified number of years.

President Biden expressed his support for this measure, stating, "These borrowers will join the millions of people that my administration has provided relief to over the past two years - resulting in over $116 billion in loan relief to over 3 million borrowers under my administration."

The Education Department clarified that the debt relief aims to rectify what it refers to as "historical inaccuracies" in the tally of payments that qualify for forgiveness under IDR plans.

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Who Will Benefit From Joe Biden Student Loan Forgiveness Plan?

The new round of automatic loan forgiveness will benefit borrowers who have Education Department Direct Loans or Federal Family Education Loans and have reached the forgiveness threshold of payment credits. The forgiveness periods encompass various scenarios, including:

  • Any month a borrower was in a repayment status, irrespective of partial or late payments, loan type, or repayment plan.

  • Any period of 12 or more consecutive months spent in forbearance.

  • Any month in forbearance for borrowers who accumulated 36 or more cumulative months in forbearance.

  • Any month in deferment (excluding in-school suspension) before 2013.

  • Any month in economic hardship or military deferments on or after January 1, 2013.

The Education Department will initiate the process of notifying borrowers of their loan forgiveness beginning July 14.

Loan discharges will commence 30 days after the borrowers are informed, according to the Department of Education website.

President Joe Biden also voiced criticism of Republican lawmakers, accusing them of hypocrisy and disregard for working and middle-class families. He emphasized their objections to the announced relief measures, despite their businesses benefiting from loan forgiveness.

Biden expressed his determination to relieve hardworking Americans and create alternative paths for borrowers, particularly in response to the Supreme Court's decision.

Announcement Comes 2 Weeks After Supreme Court Blocked Joe Biden Student Loan Forgiveness Plan

Vice President Kamala Harris expressed her and President Joe Biden's commitment to relieving student loan debt borrowers, acknowledging the importance of helping them move forward in various aspects of their lives, such as starting a family, buying a home, or pursuing entrepreneurship.

Furthermore, Harris emphasized that their efforts extend beyond the current US student loan forgiveness plan announcement, Fox Business noted.

She mentioned President Biden's recent announcement regarding pursuing an alternative path to relief through the Higher Education Act and the finalization of a new IDR plan that will significantly reduce monthly payments for undergraduate loans.

Their administration aims to ensure Americans have access to high-quality postsecondary education without overwhelming student loan debt burdens.

The recent announcement follows the Supreme Court's ruling two weeks ago, which stated that the Biden administration cannot proceed with its proposed student loan debt forgiveness program.

In a 6-3 decision, the court determined that federal law does not authorize the secretary of education to cancel more than $430 billion in student loan debt.

In response to the court's decision, Biden expressed determination to explore alternative means of delivering relief to hardworking middle-class families, stating that he would not cease finding other ways to provide relief.

The student loan initiative was put on hold due to the litigation involving the federal government offering up to $10,000 in debt relief, with a potential increase to $20,000 for Pell Grant recipients for individuals earning less than $125,000 per year.

The Joe Biden Student Loan Forgiveness program was estimated to cost the government over $400 billion.

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This article is owned by Latin Post.

Written by: Bert Hoover

WATCH: Biden administration announces $39 billion in student loan forgiveness - From 10 Tampa Bay