CNBC, April 11, 2022, Biden administration will give millions of student loan borrowers in default a fresh start — here’s what you need to know
The U.S. Department of Education says it will move to pull millions of loan borrowers out of default and mark their accounts as current.
The country’s outstanding education debt balance exceeded $1.7 trillion and posed a larger burden to households than credit card or auto debt. Roughly a quarter of student loan borrowers — or 10 million people — were estimated to be in delinquency or default and now stand to benefit from the announcement.
The Education Department said these borrowers will be granted a “‘fresh start’ on repayment by eliminating the impact of delinquency and default and allowing them to reenter repayment in good standing.”
