Student debts of 804,000 people written off in the US for $39 billion – Kommersant

The US Department of Education has begun notifying 804,000 student loan borrowers that $39 billion in debt will be automatically written off. The White House said this amid a decision by the Supreme Court to block a broader program to write off $400 billion in student loans.

The write-off of $39 billion was the result of “adjustments … to ensure that all borrowers are recorded the correct number of monthly payments they made, which determines the possibility of forgiveness under the IDR program,” under the terms of which the amount of payments depends on income and family size. This is stated in the message of the Ministry of Education.

The agency calls the decommissioning part of the plan of the American administration, which was announced in the spring of 2022. The borrower becomes eligible for loan repayment upon making 240 out of 300 monthly payments. Many Americans were unable to write off their debts after meeting the conditions due to errors in recording payments.

Americans have $1.75 trillion in student loan debt. The Supreme Court has previously ruled the Joe Biden administration’s student debt forgiveness program, which has affected tens of millions of Americans, unconstitutional. The President of the United States has already promised to find alternative solutions to the problem.

How the decisions of the Supreme Court demonstrate a split in society – in the material “Kommersant” “Not everyone recognized the supremacy of the court”.

Leonid Uvarchev