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The U.S. Department of Education plans to email borrowers with at least one outstanding federally held student loan to inform them of the Aug. 30 deadline to call their servicer and opt out if they do not want the relief.
Officials said borrowers who opt out of relief would not be able to opt back in and would be temporarily opted out of forgiveness due to enrollment in an income-driven repayment (IDR) plan until the department can automatically assess their eligibility for that benefit.
“The Biden-Harris Administration made a commitment to deliver student debt relief to as many borrowers as possible as quickly as possible, and today, as we near the end of a lengthy rulemaking process, we’re one step closer to keeping that promise,” said U.S. Secretary of Education Dr. Miguel A. Cardona.
The rules that would provide the relief to borrowers are not yet final, and the email does not guarantee specific borrowers will be eligible.
The department plans to provide additional information to borrowers once the rules are final this fall. Such rules would increase the total number of borrowers eligible for student debt relief to over 30 million, including borrowers who have already been approved for debt cancellation over the past three years.
As proposed, the rules would authorize the Secretary of Education to provide partial or full debt relief for: borrowers who owe more now than they did at the start of repayment; borrowers who have been in repayment for decades; borrowers who are otherwise eligible for loan forgiveness but have not yet applied; and borrowers who enrolled in low-financial value programs.