- ORIGINAL NEWS
After 35 years, he got $119,500 in student debt forgiven. Then the government refunded him $56,801
- SUMMARY
The U.S. Department of Education has been reviewing accounts of borrowers who have been repaying student debt for decades.
Individuals like Marlon Fox, a chiropractor in South Carolina, have had their debt forgiven through this review.
Despite having been in repayment for 20 years, Fox had not received the promised debt forgiveness under income-driven repayment plans after 25 or 30 years.
The lack of transparency and assistance from loan servicers has contributed to this issue, as servicers benefit financially from not informing borrowers about forgiveness opportunities.
However, the Education Department’s review has resulted in the forgiveness of over $5 billion in debt for thousands of borrowers.
Fox himself had his balance of $200,000 forgiven and received a refund of overpayments.
Despite facing financial challenges and having to prioritize student loan payments over retirement savings, Fox is grateful for the administration’s efforts to address the issue.
He used his refund to pay off his children’s student debt and is now able to book a vacation for the first time in years.
- NEWS SENTIMENT CHECK
- Overall sentiment:
positive
Positive
“In August, he learned that his more than $100,000 student debt balance had been canceled.”
“After the Supreme Court blocked the Biden administration’s sweeping student loan forgiveness plan last June, it has explored all of its existing authority to leave people with less education debt.”
Negative
“He’d carried the debt for 35 years.”
“After his father had a stroke, Fox became his main caregiver and was forced to pick up his expenses and debts. Things got even harder.”