Biden to cancel $39bn in US student debt to fix ‘historical inaccuracies’

Borrowers will be eligible for forgiveness if they've made 20 or 25 years of monthly IDR payments, education department says

Joe Biden's administration will cancel $39bn in student debt for more than 804,000 borrowers, the education department said on Friday, describing the relief as the result of a fix" to income-driven repayment (IDR) plans.

Borrowers will be eligible for forgiveness if they have made either 20 or 25 years of monthly IDR payments, the department said. The IDR program caps payment requirements for lower-income borrowers and forgives their remaining balance after a set number of years.