Student loan debt: Biden forgives another $4.8B for 80K borrowers
This latest move, which is part of the administration’s “relentless efforts to fix the broken student loan system," stems from fixes to the income-driven repayment plan and the Public Service Loan Forgiveness program.
“From Day One of my administration, I vowed to improve the student loan system so that a higher education provides Americans with opportunity and prosperity — not unmanageable burdens of student loan debt,” President Joe Biden said in a statement. “I won’t back down from using every tool at our disposal to get student loan borrowers the relief they need to reach their dreams.”
The new relief package falls into two categories:
- First, $2.2 billion for nearly 46,000 borrowers through fixes to income-driven repayment will provide borrowers with an accurate count of progress toward forgiveness and address longstanding concerns with misuse of forbearance. Including the latest numbers, the administration now has approved almost $44 billion in this type of relief for nearly 901,000 borrowers.
- Second, the announcement includes $2.6 billion for 34,400 borrowers through Public Service Loan Forgiveness. This brings total relief through this program to $53.5 billion for almost 750,000 borrowers since October 2021.
The administration previously approved $11.7 billion for almost 513,000 borrowers with total and permanent disabilities and $22.5 billion for more than 1.3 million borrowers who were cheated by their schools, saw their institutions close or are covered by related court settlements.
Related: ‘Congratulations!’ 800k borrowers got emails from Biden, forgiving their student debt
Meanwhile, the Education Department in recent weeks unveiled draft plans for a narrower, more targeted loan relief plan to replace Biden’s initial, sweeping program that the Supreme Court struck down as illegal in June. However, some progressive lawmakers who successfully convinced Biden to cancel student debt in the first place are concerned the latest proposals don’t go far enough. They are pressing the administration to exercise its legal authority to the “fullest extent” to maximize debt relief.
“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 … ” U.S. Secretary of Education Miguel Cardona said in a statement. “ This level of debt relief is unparalleled and we have no intention of slowing down.”
Late last week, House Republicans passed a resolution opposing Biden’s new income-driven repayment plan, called Saving on a Valuable Education, or SAVE. Conservatives in Congress denounced it as a “free college scheme.”