Department of Education Helping Students Repay Their Loans

More changes are being made to the federal student loan system. The actions announced yesterday will bring over 3.6 million borrowers at least three years closer to receiving forgiveness through an income-driven repayment program which will offer four types of repayment plans and allows borrowers to avoid loan default by lowering their monthly payment s based on family size and income. The IDR also promises loan forgiveness after 20 to 25 years of payments are made, which will send thousands of borrowers to see immediate forgiveness. Another 40,000 borrowers will receive forgiveness through the public service loan forgiveness program because they will get credit for more of their payments.