Student loan debt forgiveness could be getting closer. The U.S. Department of Education announced on Tuesday it is working to implement steps for nearly 4 million federal borrowers to reach loan forgiveness.
, according to an administration official familiar with the White House's decision-making.
Sen. Patty Murray said earlier this month, that more time is needed to help Americans prepare for repayment and to rethink the government’s existing system for repaying student debt. Murray called on the Biden administration to lift all borrowers out of default to provide a "fresh start" following the pandemic.
In March, the St. Louis Federal Reserve Bank warned that resuming loan payments could place a heavy burden on borrowers who faced financial hardship during the pandemic. It said the impact would be hardest on Black families, who are more likely to rely on student loans to pay for college.
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