The Biden administration recently announced a $7.7 billion round of student debt handouts, benefiting more than 160,000 borrowers. The money will go towards clearing debt for three categories of borrowers: those receiving Public Service Loan Forgiveness (PSLF), those enrolled in President Biden’s Saving on a Valuable Education (SAVE) Plan, and those receiving forgiveness on income-driven repayment (IDR) due to fixes made by the administration. This includes $5.2 billion for PSLF, $613 million for the SAVE Plan, and $1.9 billion for IDR payment counts adjustments.
In total, the Biden administration has now cleared $167 billion in student loan debt for 4.75 million Americans. Secretary of Education Miguel Cardona stated that this latest announcement demonstrates the administration’s commitment to bringing student debt relief to millions more across the country. The ongoing efforts aim to provide financial breathing room and lift the burden for borrowers struggling with student loan debt.
The Department of Education also updated the timing of the payment count adjustment to ensure borrowers receive credit towards IDR forgiveness and PSLF. Borrowers now have until June 30 to apply for consolidation. Under Secretary of Education James Kvaal congratulated the 160,000 borrowers set to receive debt relief, emphasizing the Biden-Harris Administration’s dedication to fixing the broken student loan system.
The Biden administration has taken various actions to address student debt issues, including securing an increase to the maximum Pell Grant and implementing rules to protect borrowers from being burdened by unaffordable debts. President Biden emphasized the progress made during his administration, including increases in Pell Grants, fixing the Public Service Loan Forgiveness program, and holding colleges accountable for exploiting students. He also reaffirmed his commitment to canceling student debt and ensuring higher education remains accessible as a pathway to the middle class.
In addition to the loans cleared under IDR, the SAVE Plan, and PSLF, the Biden administration has also provided relief to borrowers who were affected by school closures, court settlements, or cheating by institutions. The administration has approved significant amounts for borrowers with permanent disabilities as well. Although the Supreme Court ruled against the administration’s initial plan to cancel $400 billion in student loans in 2022, Biden has continued to push for student debt forgiveness. Republican states have challenged these efforts through lawsuits.
Despite the challenges from Republican opposition, President Biden remains steadfast in his commitment to addressing student debt issues and ensuring access to higher education as a means to advance upward mobility. The ongoing efforts of the administration have provided relief to millions of borrowers burdened by student loan debt and remain focused on implementing further measures to deliver financial relief and improve the overall student loan system.
