NASHVILLE, Tenn. (WTVF) — Thousands of Tennesseans will benefit from 39 billion dollars in student loan debt to be forgiven across the U.S. This comes during a time where the cost of living continues to rise and people are doing what they can to take care of their families.
Friday, the Biden Administration announced 800,000 people across the country are approved for this new loan forgiveness. Of that number, 17,000 of those are in Tennessee. That means 870 million dollars in debt relief will be provided across the state. President Joe Biden said this is for those who have been repaying their loans for 20 years or more.
"These borrowers will join the millions of people that my Administration has provided relief to over the past two years – resulting in over $116 billion in loan relief to over 3 million borrowers under my Administration," stated President Joe Biden.
You may be wondering, what do I do from here? The federal government says you don't have to do anything to receive forgiveness. Borrowers can opt out of it for any reason by contacting their loan provider. Those receiving forgiveness will have payments paused until their slate is wiped clean.
"This one really is an adjustment that was made based on poor practices before we got here. These borrowers are owed this. This is not something in addition, this is owed this," said U.S. Secretary of Education Miguel Cardona.
Those loans should be discharged around mid-August.
“But we’re not stopping there. My Administration has worked hard to secure the largest increases to Pell Grants in a decade, fixed broken loan programs such as Public Service Loan Forgiveness and created a new income-driven repayment plan that will cut undergraduate loan payments in half and bring monthly payments to zero for low-income borrowers," stated President Biden.
Borrowers who qualify should see changes to their accounts in the coming weeks.
