Home>775Times>Relief for Student Loan Borrowers in Nevada as $330 Million in Debt to be Discharged

Relief for Student Loan Borrowers in Nevada as $330 Million in Debt to be Discharged

By TheNevadaGlobeStaff, July 19, 2023 11:43 am

NEVADA – Federal officials have announced that thousands of student loan borrowers in Nevada will soon see a significant burden lifted from their shoulders. The Department of Education confirmed that 6,820 borrowers in the state will have their student loan debt discharged, amounting to a staggering $330 million in relief.

This move comes as part of the Biden-Harris Administration’s efforts to fix the Income-Driven Repayment (IDR) plans and provide automatic loan relief to eligible borrowers. Those who have accumulated the equivalent of either 20 or 25 years of qualifying months, depending on the type of loan, will be eligible for the automatic debt forgiveness.

U.S. Secretary of Education, Miguel Cardona, expressed his commitment to rectifying the flaws in the system, which have left borrowers struggling for too long. “For far too long, borrowers fell through the cracks of a broken system that failed to keep accurate track of their progress towards forgiveness,” Cardona stated. “The Biden-Harris Administration is taking another historic step to right these wrongs. By fixing past administrative failures, we are ensuring everyone gets the forgiveness they deserve.”

Nationwide, this move will bring relief to a staggering 804,000 borrowers, with a total student debt forgiveness of $39 billion.

Eligible borrowers in Nevada have already started receiving notifications about their qualification for debt forgiveness, with discharges scheduled to begin 30 days after the emails were sent. The Department of Education will continue to notify borrowers every two months until next year when all borrowers not yet eligible for forgiveness will have their payment counts updated.

This initiative represents a significant stride towards easing the financial burden on student loan borrowers, providing much-needed relief during these challenging times.

Credits: KTNV

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