Biden-Harris Administration Approves $4.9 Billion in Student Loan Forgiveness for 73,600 Borrowers

The Biden-Harris Administration has announced its approval of an additional $4.9 billion in student loan debt relief for 73,600 borrowers. This action is a result of the Administration’s efforts to address the hurdles and inaccuracies that have hindered borrowers’ access to the forgiveness they deserve. With this latest approval, the total loan forgiveness provided by the Biden-Harris Administration now amounts to $136.6 billion, benefitting over 3.7 million Americans.

U.S. Secretary of Education Miguel Cardona emphasized the Administration’s commitment to fixing the broken student loan system. He expressed his satisfaction in providing debt relief to teachers, social workers, and other public servants who have earned Public Service Loan Forgiveness, as well as borrowers eligible for income-driven repayment forgiveness.

The debt relief announced today is divided into two categories: income-driven repayment forgiveness and Public Service Loan Forgiveness. These fixes have enabled the Administration to rectify the administrative inaccuracies that previously prevented borrowers from accessing the loan forgiveness programs.

Under the income-driven repayment forgiveness program, borrowers whose payments are now being accurately accounted for will qualify for debt relief. As for Public Service Loan Forgiveness, this approval ensures that borrowers who planned their lives around the promises made to them will receive the help they were originally assured.

In addition to this announcement, the Biden-Harris Administration has fast-tracked additional loan forgiveness through the Saving on a Valuable Education (SAVE) Plan. Borrowers who originally borrowed $12,000 or less and are enrolled in the SAVE Plan will now be eligible to have their debts automatically cancelled after as few as 10 years of payments. This early implementation of the SAVE Plan allows borrowers to receive forgiveness ahead of schedule, with no action needed on their part.

To ensure all eligible borrowers are aware of the opportunity, the U.S. Department of Education has started communications with those who may be eligible but not already enrolled in the SAVE Plan. They are also working with partners through the SAVE on Student Debt campaign to reach and assist eligible borrowers in signing up for the program.

The Biden-Harris Administration’s commitment to reducing the burden of student debt is unprecedented. They have not only provided loan forgiveness through IDR and PSLF but also secured the largest increase to Pell Grants in a decade. Additionally, new rules have been established to protect borrowers from career programs that result in unaffordable debts or insufficient earnings. Despite the setback from the Supreme Court decision on the initial student debt relief plan, the Administration continues to pursue alternative paths to debt relief through negotiated rulemaking under the Higher Education Act.