Debt settlement attorneys have been paying down their student loans for years.
They’re now on their third installment in a new deal that will pay them $250,000 over five years to settle their debt, according to the Huffington Post.
The Huffington Post reported that the settlement comes as a result of a federal lawsuit filed in 2013 by former student Josh Thomas, who sued the federal government for $4 million for allegedly not paying his debts.
The agreement was announced by U.S. Attorney General Loretta Lynch in February, who said it will reduce the federal debt burden on debtors by $2 billion over the next five years.
In the agreement, student borrowers will pay off their debts and have their interest and fees paid off.
They will also have access to a loan modification program to allow them to refinance their student debt and refinance in a different lender.
Students who graduate this fall will have to pay an extra $1,500 per year in interest and $400 in fees to the government to help pay for the program.
The government also plans to forgive student loans and interest they have paid off over the past three years.
According to the HuffPost, the new program will help about 800,000 borrowers repay their student loan debt, with about 2.4 million of them currently paying off their debt.
The deal will help the government avoid paying back more than $5 billion in federal student loan debts.
It will also help borrowers refinance debt by refinancing their existing loans, which can save them money and help them pay down the rest of their debt over the course of five years, the HuffPost reported.