Dept. of Education pauses certain student loan forgiveness
(CNN, KYMA/KECY) - The U.S. Department of Education has temporarily paused certain student loan forgiveness.
Earlier this month, the department posted on its Student Aid website saying it halted the cancellation of student loans in income-based repayment plans.
The reason: It needs to address a federal court order that affects income-driven repayment plans, particularly regarding how certain payment periods are counted toward forgiveness.
Roughly two million borrowers in these plans are eligible to have their loans forgiven after either 20 or 25 years of payments.
The Education Department says forgiveness will resume once system updates are made, but no timeline has been provided.
