30K Pennsylvanians approved for $1.3B in income-driven repayment forgiveness for student loans
PHILADELPHIA (CBS) – Nearly 30,000 federal student loan borrowers in Pennsylvania have been approved for loan forgiveness, the U.S. Department of Education announced Tuesday.
Pennsylvanians will receive more than $1.3 billion in income-driven repayment (IDR) forgiveness after the Biden-Harris Administration approved 804,000 borrowers for $39 billion in federal student loans for automatic discharge this summer.
Nearly 17,300 New Jerseyans will receive part of the $788 million allocated to the state. In Delaware, just over 2,400 residents will see part of $113 million forgiven.
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"I have long said that college should be a ticket to the middle class - not a burden that weighs down on families for decades," President Biden said in a statement Friday. "My Administration is delivering on that commitment."
IDR plans will base a borrower's monthly student loan payment on the borrower's income and family size, according to the Department of Education. The plans will also offer forgiveness of any remaining loan balance after the borrower makes 240 or 300 monthly payments, which equals out to 20 to 25 years.
Eligible borrowers were notified by the Department of Education last Friday and discharges are expected to begin within 30 days. Officials said they will continue to identify and notify those who reach the applicable forgiveness threshold.
"We're not stopping there," Biden added. "As long as I'm in office, I will continue to work to bring the promise of college to every American."
More information about the discharges can be found on the Department of Education website.