According to Education Data, more than 40 million borrowers are paying off debt with an average balance of $37,000 or more.
The student loan waiver is expected to come into effect from November 22 following the decision of the Supreme Court reviewing the bill.
He is scheduled to rule on the loan waiver scheme on June 30. If the court cannot allow the program to proceed or make a decision by this date
People with outstanding loans may be eligible for loan forgiveness immediately after the judgment. If the judge votes no, the Biden administration will have to reevaluate the proposal.
The student loan grace period is set to expire after June 30 or 60 days after the date the Supreme Court decides on the student loan program, whichever comes first.
Federal student loan payments will resume around August 30 unless the Biden administration decides to extend the moratorium.
The Biden administration announced an income-driven repayment system aimed at providing retroactive credits for student debt forgiveness to millions of borrowers under the IDR plan.
The Department of Education will issue an adjustment that applies to the previous payment period. The effective date of this initiative is currently set at 31st December.