USDA to Distribute $123 Million to Distressed Borrowers in Second Tranche of Debt Relief

USDA has announced an additional $123 million in payments to be made in April under the Biden Administration’s Inflation Reduction Act (IRA).

Qualifying payment recipients will be those who:

1.) Were past due on qualifying direct loan as of September 30, 2020, but by fewer than 60 days and are still delinquent;
2.) Restructured a qualifying loan after February 28, 2020, through primary loan servicing at FSA;
3.) Owe more interest on a direct loan than the level of principal owed.

USDA released over $800 million in automatic debt relief payments in 2022 to nearly 14,000 borrowers.

Read more on the agency’s debt-relief efforts for distressed borrowers here.