The Federal Government Will Reportedly Forgive $108 Billion In Student Loan Debt

The Department of Education estimate targets 5 million borrowers with over $350 billion in debt.

November 30, 2016
The Federal Government Will Reportedly Forgive $108 Billion In Student Loan Debt Kevork Djansezian / Getty Images

The federal government will reportedly forgive $108 billion in student loan debt, in response to a new report from the Government Accountability Office, according to The New York Times.

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The $108 billion figure is substantially higher than the amount expected to be relieved through a current plan that would tie repayment to borrowers' earnings. The plans in place via the Department of Education, would seek to provide relief to over 5 million borrowers carrying more than $355 billion in debt.

The aforementioned report, issued by the GAO, was apparently highly critical of The Education Department's budget estimates for the programs, and recommended an additional $29 billion be discharged due to death or disability.

The additional funds would supplement a program that aims to make paying off debt easier by setting monthly payments proportionally based on the borrower's income, extending repayment windows, and ultimately forgiving remaining balances.

Full story here via The New York Times, and find more info on Federal Student Aid here.

The Federal Government Will Reportedly Forgive $108 Billion In Student Loan Debt