Department of Education to notify millions of Americans about debt elimination this fall

Debt Relief News

Department of Education to notify millions of Americans about debt elimination this fall
Student LoanBiden AdministrationDepartment Of Education
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The Biden administration is notifying millions of federal student loan borrowers this week about options they may have to take care of their student debt.

FILE - President Joe Biden speaks about student loan debt, April 8, 2024, in Madison, Wis. A federal appeals court has blocked the implementation of the Biden administration's student debt relief plan, which would have lowered monthly payments for millions of borrowers. In a ruling Thursday, July 18, the 8th Circuit Court of Appeals granted a request by a group of Republican-led states seeking to invalidate the administration's entire loan forgiveness program.

Biden's backup plan has been in the works since his initial plan to cancel Americans' student debt was overturned by the U.S. Supreme Court last year. Borrowers have until August 30 to inform their servicer if they want to opt-out from the relief, according to the Department of Education. The department did note that borrowers who opt out will not be able to opt back in.

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