Biden Administration Announced More Student Loan Forgiveness

The Biden-Harris Administration has approved a substantial $4.8 billion in student loan debt relief for 80,300 borrowers, according to the latest announcement from the Department of Education. This significant move is part of the Administration’s ongoing efforts to overhaul the federal student loan system and provide much-needed relief to borrowers across the United States.

U.S. Secretary of Education Miguel Cardona highlighted the transformative nature of these efforts, stating, “Before President Biden took office, accessing the student debt relief one had rightfully earned was nearly impossible. Today’s data release underscores the immense impact of the Biden-Harris Administration’s commitment to rectifying the broken student loan system.”

PSLF And IDR Loan Forgiveness

This latest round of debt relief approvals categorizes into two distinct segments: $2.2 billion for nearly 46,000 borrowers through rectifications made to the income-driven repayment (IDR) program, and $2.6 billion for 34,400 borrowers via the Public Service Loan Forgiveness (PSLF) program. These adjustments ensure more accurate progress tracking towards forgiveness and address the misuse of forbearance in IDR, reflecting a marked improvement from prior administrative practices.

The cumulative debt cancellation under the Biden-Harris Administration is now close to $132 billion, benefiting over 3.6 million Americans. This figure is a stark contrast to the meager 7,000 borrowers who had received forgiveness through these programs before the current Administration took office.

Related: President Biden Has Forgiven The Most Student Loans Of Any President

Other Ways The Administration Is Focused On Student Loans

The Administration’s commitment to student debt relief extends beyond these latest measures. Earlier this year, it introduced SAVE, a highly affordable student loan repayment plan, which, for many borrowers, lowers monthly payments to as low as $0 and prevents balance growth due to unpaid interest. Additionally, the Administration has secured the largest increase in Pell Grants in a decade and has put into place new rules to shield borrowers from career programs that could result in unaffordable debts or insufficient earnings.

Despite the Supreme Court’s decision regarding the Administration’s original student debt relief plan, efforts are ongoing to explore alternative pathways for debt relief under the Higher Education Act. These endeavors underscore the Administration’s dedication to alleviating the burden of student loans and ensuring they do not impede opportunities for students and families.

The Biden-Harris Administration has also made strides in other areas of debt relief. It approved $11.7 billion for almost 513,000 borrowers with total and permanent disabilities and $22.5 billion for more than 1.3 million borrowers who were defrauded by their schools, affected by sudden school closures, or are covered by related court settlements.

According to the Administration, this comprehensive approach to student loan reform and debt relief reflects an unprecedented level of assistance for borrowers, setting a new standard in governmental support and oversight for education.

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