The Biden administration recently announced another round of student debt relief, totaling $7.7 billion for more than 160,000 borrowers. This relief covers three categories of borrowers: those under the Public Service Loan Forgiveness program, those enrolled in President Biden’s SAVE Plan, and those under income-driven repayment plans. This brings the total amount of student loan debt cleared by the administration to $167 billion for 4.75 million Americans, according to the Department of Education. Education Secretary Miguel Cardona emphasized the administration’s commitment to bringing financial relief to borrowers and lifting burdens.
The Department of Education also introduced an update on the timing of payment count adjustments, allowing borrowers more time to apply to consolidate loans. Under Secretary of Education James Kvaal commended the Biden administration’s efforts in fixing the broken student loan system and providing relief to borrowers. The administration has implemented various actions to address student debt, including securing increases in the Pell Grant and finalizing rules to protect borrowers from unaffordable debts from certain career programs. President Biden expressed his dedication to ensuring that higher education remains a pathway to the middle class, promising to continue working towards student debt cancellation despite challenges from Republican officials.
In addition to the relief provided through IDR, the SAVE Plan, and PSLF, the Biden administration has also cleared $28.7 billion in debt for borrowers who were impacted by school closures or other related issues, and $14.1 billion for borrowers with total and permanent disabilities. While the Supreme Court ruled against the administration’s initial plan to cancel up to $400 billion in student loans, President Biden has pursued new initiatives to address student debt. However, there have been legal challenges from Republican-led states opposing these efforts.
Overall, the Biden administration’s continued actions to provide student debt relief have been significant, with billions of dollars in debt cleared for millions of borrowers. The administration’s commitment to improving access to higher education and alleviating financial burdens on students and families remains a priority. Despite legal challenges and setbacks, President Biden and his team continue to advocate for debt relief and financial support to ensure that education remains an opportunity for individuals to achieve economic stability and success. With ongoing efforts and updates to loan forgiveness programs, the administration aims to provide more borrowers with much-needed relief from the challenges of student debt.
