Historic Student Debt Relief: Biden-Harris Administration Clears $4.9 Billion for 74,000 Borrowers

The Biden-Harris Administration recently announced a significant advancement in student loan debt relief, with an additional $4.9 billion approved for nearly 74,000 borrowers. This substantial debt relief effort is a part of the Administration's ongoing mission to rectify issues within the student loan system, particularly focusing on income-driven repayment (IDR) forgiveness and Public Service Loan Forgiveness (PSLF).

This latest move brings the total loan forgiveness under the Biden-Harris Administration to an impressive $136.6 billion, benefiting over 3.7 million Americans. The breakdown of the recent debt relief includes $1.7 billion for about 29,700 borrowers through administrative adjustments to IDR payment counts and $3.2 billion for 43,900 borrowers through PSLF. These adjustments address longstanding concerns about the misuse of forbearance by loan servicers and are part of broader efforts to make the student loan system more just and efficient.

Moreover, the Administration is also fast-tracking additional loan forgiveness through the early implementation of the Saving on a Valuable Education (SAVE) Plan. This plan will provide forgiveness for borrowers who took out $12,000 or less for college after a shorter payment period of 10 years. The Department of Education is actively reaching out to potentially eligible borrowers to encourage them to enroll in the SAVE Plan.

These steps represent a significant effort by the Biden-Harris Administration to alleviate the burden of student debt and make higher education more accessible and equitable for all Americans.