Biden Administration Approves Nearly $5 Billion in Student Loan Debt Relief for Over 80,000 Borrowers

United States North America Higher Education News by Erudera News Dec 14, 2023

student loan debt

The Biden-Harris administration has approved an additional $4.8 billion in student loan debt relief for a total of 80,300 borrowers, the US Department of Education said.

According to a press release by the department, with this approval, the Biden administration has now canceled a total debt of almost $132 billion for more than 3.6 million Americans, reports.

Commenting on the action, the US Secretary of Education, Miguel Cardona, said that the data reflects President Biden’s commitment to helping student loan borrowers. He further said that prior to Biden assuming the presidency, eligible borrowers faced challenges in accessing the student debt relief they deserved.

“The data released today once again make clear that the Biden-Harris Administration’s relentless efforts to fix the broken student loan system are paying off in a big way, with more than 3.6 million borrowers now approved for nearly $132 billion in loan forgiveness. This level of debt relief is unparalleled and we have no intention of slowing down,” Cardona said.

The debt relief approvals granted by the administration are categorized into two groups, one of which is $2.2 billion allocated for nearly 46,000 borrowers through fixes to the Income-Driven Repayment (IDR) system. So far, the administration has approved almost $44 billion in IDR relief for nearly 901,000 borrowers.

Additionally, $2.6 billion has been approved for 34,400 borrowers under the Public Service Loan Forgiveness (PSLF) program, which includes those benefiting from the limited PSLF waiver and ongoing regulatory improvements.

“This brings total relief through PSLF up to $53.5 billion for almost 750,000 borrowers since October 2021. By contrast, only about 7,000 borrowers had received forgiveness through these programs at the start of the Biden-Harris Administration,” the press release adds.

Earlier this year, the administration introduced the SAVE initiative, the most cost-effective student loan repayment plan. This program reduces monthly payments for many borrowers to as low as $0 and prevents balances from increasing due to unpaid interest.

Additionally, besides the relief under IDR and PSLF, the Biden-Harris Administration has also approved $11.7 billion for about 513,000 borrowers with a total and permanent disability and $22.5 billion for over 1.3 million student loan borrowers who were defrauded by their schools.

Data indicate that nearly 44 million borrowers have federal student loan debt. In other words, the total federal student loan debt balance reached over $1.63 trillion.

>> University of Miami Student Says $55,000 Were Mysteriously Added to Her Student Loan

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