Overview:
The Biden-Harris Administration has announced the approval of an additional $4.9 billion in student loan debt relief for 73,600 individuals.
In a move to alleviate the financial burden on borrowers, the Biden-Harris Administration has announced the approval of an additional $4.9 billion in student loan debt relief for 73,600 individuals.
This latest announcement brings the total loan forgiveness approved by the Biden-Harris Administration to an impressive $136.6 billion, benefitting over 3.7 million Americans grappling with student loan debt. This relief directly results from efforts to rectify issues within the income-driven repayment (IDR) forgiveness and Public Service Loan Forgiveness (PSLF) programs.
U.S. Secretary of Education Miguel Cardona expressed the administration’s commitment to fixing the flaws in the student loan system, stating, “The nearly $5 billion in additional debt relief announced today will go to teachers, social workers, and other public servants whose service to our communities has earned them Public Service Loan Forgiveness.”
The breakdown of the $4.9 billion relief is as follows:
- $1.7 Billion for 29,700 Borrowers through IDR Adjustments:
Administrative adjustments to IDR payment counts have brought 29,700 borrowers closer to forgiveness. This addresses concerns related to the misuse of forbearance by loan servicers. With today’s announcement, the total IDR relief under the Biden-Harris Administration reaches $45.7 billion, benefiting 930,500 borrowers. - $3.2 Billion for 43,900 Borrowers through PSLF:
The relief for 43,900 borrowers through Public Service Loan Forgiveness includes those who have benefited from the Administration’s limited PSLF waiver and regulatory improvements. The total relief through PSLF since October 2021 now stands at $56.7 billion for 793,400 borrowers.
The U.S. Under Secretary of Education, James Kvaal emphasized the administration’s commitment to assisting those affected by the broken student loan system, stating, “The Biden-Harris Administration is not going to stop until we’ve helped all of those harmed by the broken student loan system.”
Continued debt relief efforts were highlighted with the recent announcement of the Saving on a Valuable Education (SAVE) Plan. Borrowers who originally borrowed $12,000 or less for college and are enrolled in the SAVE Plan will witness forgiveness after as few as ten years of payments.
The Department of Education is actively reaching out to eligible borrowers, encouraging them to sign up for the SAVE Plan, with automatic debt cancellation for those eligible beginning next month, months ahead of schedule.
Borrowers seeking additional information and resources can visit StudentAid.gov and sign up for the SAVE Plan at StudentAid.gov/save.
