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The program will benefit more than 800,000 low-income college students enrolled in the government’s student loan program.
The US government announced this Friday (July 14, 2023) that it will forgive US$38 billion in student loans. The move will benefit more than 800,000 low-income college students enrolled in the government’s student loan forgiveness program. Here it is Full Conclusion (45 KB, in English).
The program allows the government to forgive the remaining student loan debt after making a certain number of payments.
However, according to the U.S. Department of Education, administrative errors and system failures led to payments not being identified, leaving many students who were eligible to receive services in default.
“For too long, borrowers have fallen through the cracks of a broken system that fails to accurately track their progress toward forgiveness.”Education Secretary Miguel Cardona said.
The flaws were discovered in 2022 after borrowers filed multiple administrative lawsuits and complaints against the Department of Education for mismanagement of the student loan forgiveness process.
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