ATLANTA — The Biden administration is promising nearly $40 billion in student loan forgiveness in a plan that could give relief to thousands of borrowers.
The U.S. Department of Education is now providing a state-by-state breakdown that says Georgia could see more than $2 billion.
According to the figures released Tuesday, in Georgia there are 38,590 borrowers who will qualify to receive $2.13 billion in forgiveness.
The Biden administration has framed the new policy as a correction to the way the monthly payments for income-driven repayment (IDR) plans are calculated. Some plans will forgive the remaining debt after 20 or 25 years of making qualifying monthly payments.
It will apply to those with Direct Loans and Federal Family Education Loans. Loans still with the Department of Education may earn credit during repayment, qualifying them for Income Driven Repayment forgiveness if it reaches the threshold.
New credit for monthly qualifying will be applied to:
- Any month in which a borrower was in a repayment status, regardless of whether payments were partial or late, the type of loan, or the repayment plan;
- Any period in which a borrower spent 12 or more consecutive months in forbearance;
- Any month in forbearance for borrowers who spent 36 or more cumulative months in forbearance;
- Any month spent in deferment (except for in-school deferment) prior to 2013; and
- Any month spent in economic hardship or military deferments on or after January 1, 2013
More on student loan debt forgiveness