Following Biden's recent reforms, 813,000 student loan borrowers are now receiving emails stating that their loans are cancelled.
- Biden is emailing 813,000 borrowers of student loans who had their loans forgiven in August.
- Account adjustments are the reason behind it, as they guarantee that all borrower payments are recorded.
- Only a few months have passed since the federal payments made by borrowers resumed following the pandemic pause.
Verify your email: Once their balances were lowered to zero, thousands of student loan borrowers began to receive emails from Biden.
About 813,000 borrowers who had their accounts adjusted in August will begin to receive an email from President Joe Biden on Tuesday, the White House announced. The email will congratulate them on their loan forgiveness as a result of the Education Department's one-time account adjustment, which was done to determine which borrowers had satisfied the qualifying payment threshold on their repayment plan.
The continuous relief borrowers are experiencing, according to a White House official, follows a number of borrowers who were not given proper credit for payments made on income-driven repayment plans, which are designed to give borrowers payments based on their income with the promise of forgiveness after twenty or twenty-five years.
"Congratulations — your student loan has been forgiven because of actions my Administration took to make sure you receive the relief you earned and deserve," Biden writes in an email.
"For too long, the student loan program failed to live up to its commitments – and millions like you never got the relief you were owed because of errors and administrative failures," the message read. "I vowed to fix that, and I'm proud that my Administration has delivered on that promise."
A growing number of borrowers have experienced debt relief in recent months as a result of changes made to borrowers' accounts by the Education Department. In October, an additional 125,000 borrowers received relief from $9 billion in debt through Public Service Loan Forgiveness in addition to income-driven repayment adjustments.
For borrowers, this relief comes at a difficult moment. Federal student loan payments resumed in October following a more than three-year hiatus. As a result of the unprecedented shift back into repayment, many borrowers have faced a number of difficulties, such as incorrect billing and problems communicating with their servicer.
In response to servicer MOHELA's late delivery of billing statements to millions of borrowers, the Education Department withheld October's pay, demonstrating its commitment to hold providers responsible as borrowers make their payments.
In addition, the department is currently developing a new plan for student loan forgiveness following the Supreme Court's June ruling that invalidated Biden's initial attempt at broad relief. To draft the final rule, which is expected to be more restrictive than the first, the department will get together with a group of negotiators for a third time in December.
However, some borrowers have told Insider that the relief the Education Department is providing has been significant for them despite the difficulties they are having making their payments and the uncertainty surrounding the next relief plan.
"It's a relief because it's money that I can use for my family's expenses, which will make a huge difference for me," borrower George Tucker, 63, previously told Insider.
"My wife isn't working, and I have a daughter who just had a baby who is now seven months old, so I'm helping her right now," he said. "My spouse and I are trying our best to support her because she does not have the kind of income that she would need to be self-sufficient. Thus, this relief will be very beneficial."
