WASHINGTON (TNND) — Millions of student loan borrowers will have access to student loan forgiveness if they are qualified for two different programs.
Following a deal made between the Trump administration and the American Federation of Teachers, borrowers of the Pay as You Earn plan and the Income Contingent Repayment plan will be eligible for forgiveness.
Over 40 million Americans have student loan debt, according to CNBC.
There’s about 2.5 million borrowers that are either in the PAYE or ICR programs, but they have to make sure they qualify.
After ICR and PAYE are phased out, those in the plans who don’t qualify will have to go to another plan.
Nancy Nierman, the assistant director of the Education Debt Consumer Assistance Program in New York, said that specific borrowers who have enough credit to get forgiveness under ICR and PAYE at the moment don’t have to transfer to IBR to get their loans discharged.
At one point, the Trump administration blocked the programs but earlier this month it reached an agreement with a teachers union.
The legal director for Protect Borrowers, a nonprofit that defends individuals who borrow student loans, said the deal was a tremendous win.
“The U.S. Department of Education has agreed to follow the law and deliver Congressionally mandated affordable payments and debt relief to hard-working public service workers across the country,” Winston Berkman-Breen said.
