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By Tyler Durden, Zero Hedge
As suspected following the Supreme Court’s recent ruling to block the Biden administration’s student loan forgiveness proposal, the administration has created their own loophole to do it anyway.
On Friday, the administration announced the forgiveness of $39 billion in student debt for 804,000 borrowers.
The new program is thanks to a new regulatory rulemaking process by the Department of Education, which tweaked the student loan program’s income-driven repayment plans, CNBC reports.
Under those repayment plans, borrowers get any remaining debt canceled by the government after they have made payments for 20 years or 25 years, depending on when they borrowed, and their loan and plan type.
In the past, payments that should have moved a borrower closer to being debt-free were not accounted for, according to the Biden administration.
“For far too long, borrowers fell through the cracks of a broken system that failed to keep accurate track of their progress towards forgiveness,” said US Secretary of Education, Miguel Cardona.
Eligible borrowers will be notified in the coming days by the Education Department.
Read the full article here: Loophole: Biden Admin Forgives $39 Billion In Student Debt For Over 800,000 Borrowers | ZeroHedge
