On Wednesday, President Joe Biden announced that his administration has given the green light for an extra $9 billion in student debt relief.
President Biden has consistently believed that higher education should serve as a pathway to the middle class rather than impose a financial burden on families.
That’s why, from the very beginning, Biden student loan forgiveness program has been taking unprecedented actions to address the flaws in the student loan system and enhance the affordability of college education.
In the new student loan forgiveness update, President Biden has declared that an extra 125,000 Americans are now eligible for $9 billion in debt relief.
Biden Student Loan Forgiveness Update
This achievement stems from his administration’s improvements in income-driven repayment (IDR) and Public Service Loan Forgiveness. This also applies to debt cancellation for borrowers facing total and permanent disabilities. It marks a substantial stride towards addressing the student loan crisis.
This student loan forgiveness news adds to the total debt cancellation approved by the Biden-Harris Administration, reaching $127 billion for nearly 3.6 million Americans. This Includes:
- Nearly $42 billion for nearly 855,000 borrowers eligible for income-driven repayment forgiveness, addressing historical inaccuracies in payment counts.
- Almost $51 billion for 715,000 public servants through Public Service Loan Forgiveness programs.
- $11.7 billion for almost 513,000 borrowers with total and permanent disabilities.
- $22.5 billion for over 1.3 million borrowers affected by school misconduct, sudden closures, or related court settlements.
- Biden student loan forgiveness is approving $5.2 billion in extra debt relief for 53,000 borrowers within the Public Service Loan Forgiveness programs.
- Nearly $2.8 billion in new debt relief has been approved for almost 51,000 borrowers due to fixes made to income-driven repayment plans. These borrowers had made payments for 20 years or more but had not received the relief they were rightfully entitled to.
- An allocation of $1.2 billion has been designated for nearly 22,000 borrowers with total or permanent disabilities identified and approved for discharge through a data match with the Social Security Administration.
State-specific data on Biden student loan forgiveness program
The Department of Education is making available state-specific figures detailing the debt relief approved by the Biden student loan forgiveness program through adjustments to income-driven repayment (IDR) and Public Service Loan Forgiveness programs. These figures provide a breakdown of the relief granted in each state.
U.S. Secretary of Education Miguel Cardona praised President Biden and his administration for their unwavering commitment to rectifying the longstanding issue of millions of eligible borrowers being unable to access the student debt relief they deserved.
He emphasized that their relentless efforts have effectively transformed the broken student loan system, bringing about significant change.
Advancing college affordability through student loan forgiveness
This student loan forgiveness update further extends the Biden-Harris Administration’s ongoing efforts to enhance college affordability and ensure that student loans do not hinder student and family opportunities.
Joe Biden’s student loan forgiveness program introduced the SAVE program earlier this year, offering the most affordable student loan repayment plan.
This initiative allows many borrowers to have monthly payments as low as $0 and prevents interest from accumulating unpaid balances.
Advancing Pell Grants through Biden student loan forgiveness
President Joe Biden’s student loan forgiveness plan achieved a significant milestone. They secured the largest increase in Pell Grants in a decade. They implemented new rules to protect borrowers from career programs that lead to unmanageable debts or insufficient earnings.
Following the Supreme Court’s decision on the original student debt relief plan, President Biden’s Administration pursued an alternative approach through negotiated rulemaking under the Higher Education Act.
In this process, the Department of Education recently announced the individuals serving on the negotiating committee and provided an issue paper to guide the first session.
The paper outlines the committee’s task of exploring ways to assist various types of borrowers, including those with balances exceeding their original loans, eligible relief applicants under existing plans who haven’t applied, and borrowers facing financial hardships that the current system doesn’t address.