- Additional Student Debt Relief Announced by Biden-Harris Administration:
- The Biden-Harris Administration approved an additional $7.4 billion in student loan debt relief for 277,000 borrowers. These discharges are for borrowers who signed up for President Biden’s Saving on a Valuable Education (SAVE) Plan and are eligible for its shortened time-to-forgiveness benefit. This action comes as nearly 8 million borrowers have been helped by the SAVE plan, including 4.5 million with a $0 monthly payment. The total loan forgiveness approved by the Biden-Harris Administration now stands at $153 billion for nearly 4.3 million Americans1.
- Proposed Regulatory Text for Student Debt Cancellation:
- The Department of Education released proposed regulatory text to cancel student debt for borrowers experiencing hardship paying back their loans. Late last year, they also proposed canceling debt for borrowers who owe more than they borrowed, first entered repayment 20 or 25 years ago, attended low-quality programs, and would be eligible for loan forgiveness through income-driven repayment programs like SAVE but have not applied2.
- Additional Relief for IDR Forgiveness and PSLF:
- The Biden-Harris Administration announced the approval of an additional $4.8 billion in student loan debt relief for 80,300 borrowers. These discharges stem from fixes made by the U.S. Department of Education to income-driven repayment (IDR) forgiveness and Public Service Loan Forgiveness (PSLF)3.
In summary, efforts are ongoing to provide debt relief to borrowers, with a focus on those enrolled in programs like SAVE and addressing longstanding concerns with loan servicers. The goal is to alleviate the burden of student loan debt for millions of Americans123.
