TBA Law Blog


Posted by: Stacey Shrader Joslin on Jan 12, 2024

The U.S. Department of Education today said it would fast-track loan forgiveness for low-balance borrowers, implementing a plan to start forgiving loans next month instead of in July as planned. According to Nashville Public Radio, the change will benefit undergraduate and graduate students who borrowed $12,000 or less in federal student loans and have been in repayment for at least 10 years. These loans will be automatically erased in February, so long as borrowers are actively repaying their loans and are enrolled in the Biden administration's income-based repayment plan known as SAVE. For every additional $1,000 in debt, the repayment window increases by a one year. For example, a student who took out $13,000 in loans will have their debts erased if they have been in repayment for 11 years.