The Biden Administration Announces $7.7 Billion in Student Loan Forgiveness for 160,500 Borrowers
The Biden Administration Announces $7.7 Billion in Student Loan Forgiveness for 160,500 Borrowers
The Biden Administration announces $7.7 billion in student loan forgiveness, benefiting 160,500 borrowers.
On Wednesday, the U.S. Department of Education announced that it has approved $7.7 billion in student debt cancellation for 160,500 borrowers. This relief is a result of improvements made to the Public Service Loan Forgiveness (PSLF) program and income-driven repayment plans.
Breakdown of the $7.7 Billion in Student Loan Forgiveness
According to the announcement, 66,900 borrowers will receive relief through fixes to PSLF, totaling $5.2 billion in debt cancellation. Another 54,300 borrowers will benefit from the new Saving on a Valuable Education (SAVE) income-driven repayment plan, receiving $613 million in relief. The SAVE plan, implemented earlier this year, forgives student debt for borrowers who originally took out $12,000 or less in student loans and made as few as 10 years of payments.
Additionally, 39,200 borrowers will receive relief through one-time account adjustments to bring payments on income-driven repayment plans up to date, resulting in $1.9 billion in debt cancellation. More than one out of every 10 federal borrowers has now been approved for debt cancellation.
Ongoing Efforts to Provide Student Loan Relief
The Education Department has extended the deadline for borrowers to consolidate their loans to benefit from the one-time account adjustment, giving them two extra months to take action before the adjustments are completed in September.
The Education Department is also working on implementing a broader student-loan forgiveness plan, following the Supreme Court’s decision to strike down the previous one. The public comment period has concluded, and the department aims to begin implementing the relief this fall.
Total Student Debt Relief Under the Biden Administration
Related posts
