The Department of Education has approved another $4.8 billion in student loan forgiveness. The relief for 80,300 borrowers stems from fixes to income-driven repayment (IDR) and Public Service Loan Forgiveness (PSLF) plans.
Wednesday’s announcement came about a week after the Biden administration sent emails to more than 800,000 borrowers informing them that their student loan debt had been canceled.
This latest effort will affect thousands of borrowers, including teachers, military service members, nurses and other public service workers, who were not properly credited for student loan payments that should have wiped away their remaining debt.
President Joe Biden’s original plan to expunge $400 billion in student loan debt was rejected by the Supreme Court earlier this year, but the administration’s efforts have continued.
In a statement, Biden expressed the administration’s goal to continue delivering student debt relief to “as many borrowers as possible as quickly as possible.”
This latest move raises the Biden Administration’s student loan debt cancellation total to $132 billion for 3.6 million American borrowers. Almost 6 million additional borrowers are currently enrolled in the Saving on a Valuable Education, or SAVE, program that reduces student loan debt—or even wipes it out for some participants.
What Does the Latest Loan Forgiveness Look Like?
The administration’s newest round of student loan debt relief targets borrowers enrolled in IDR or PSLF programs. Borrowers can receive debt relief in one of two ways, according to the Department of Education:
- Almost 46,000 borrowers will receive $2.2 billion through revisions to IDR that improve the borrower’s ability to track and receive credit toward forgiveness for their payments. To be eligible, borrowers will need to provide proof of at least 20 years of qualifying payments for which they haven’t received credit. With this effort, IDR relief has risen to $44 billion for almost 901,000 borrowers.
- More than 34,000 PSLF borrowers will receive $2.6 billion in relief, including those who have taken advantage of the limited PSLF waiver and other improvements to PSLF programs. This brings PSLF relief up to $53.5 billion for nearly 750,000 borrowers over two years.
Other Efforts To Eliminate Student Debt
The latest loan forgiveness announcements are part of a continuing effort by the Biden Administration to reduce student debt for past and future borrowers. It includes an increase in Pell Grants to help families making less than $60,000 annually.
The administration has also approved $11.7 billion in relief to 513,000 borrowers with disabilities and $22.5 billion for more than 1.3 million borrowers who have had their funds mishandled by schools, attended a school that was closed or were covered by court settlements.
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