The Biden-Harris Administration recently announced the approval of an additional $4.9 billion in student loan debt relief, benefiting 73,600 borrowers. This move is a result of corrective actions to address issues in income-driven repayment (IDR) forgiveness and Public Service Loan Forgiveness (PSLF) programs.
“The nearly $5 billion in additional debt relief announced today will go to teachers, social workers, and other public servants whose service to our communities have earned them Public Service Loan Forgiveness, as well as borrowers qualifying for income-driven repayment forgiveness because their payments are for the first time being accurately accounted for,” U.S. Secretary of Education Miguel Cardona said in a press release.
The allocation includes $1.7 billion for 29,700 borrowers through administrative adjustments to IDR payment counts, addressing concerns with forbearance misuse and bringing borrowers closer to forgiveness. The total IDR relief approved by the Administration is now $45.7 billion for 930,500 borrowers.
Additionally, $3.2 billion is allocated for 43,900 borrowers through the PSLF program, encompassing those benefiting from a limited PSLF waiver and regulatory improvements. The total relief through PSLF has reached $56.7 billion for 793,400 borrowers since October 2021.
“Today we are helping borrowers who were promised help with their loans, planned their lives around those promises, and earned forgiveness through years of payments.” U.S. Under Secretary of Education James Kvaal said in the release “The Biden-Harris Administration is not going to stop until we’ve helped all of those harmed by the broken student loan system.”
In addition to this announcement, the Department of Education is fast-tracking additional loan forgiveness through the early implementation of the Saving on a Valuable Education (SAVE) Plan. Borrowers who originally took out $12,000 or less for college and are enrolled in the SAVE Plan will experience forgiveness after as few as 10 years of payments. Eligible borrowers already enrolled will have their debts automatically canceled ahead of schedule.
