Student loan relief is coming to another 74,000 Americans, with President Biden on Friday announcing an additional $5 billion in debt forgiveness for borrowers including teachers, nurses, and firefighters. The announcement marks the latest round of debt cancellations since the Supreme Court last summer blocked Mr. Biden’s student loan forgiveness program, and brings the total forgiven amount to $136.6 billion for more than 3.7 million Americans.
The discharges are the result of fixes made by the administration to income-driven repayment (IDR) forgiveness and Public Service Loan Forgiveness (PSLF), with the Department of Education stating that payments are now being accounted for more accurately.
One week ago, the Biden administration stated that starting in February, individuals with less than $12,000 in student loans who have been making payments for at least 10 years would have their remaining loan balance erased. To qualify, borrowers must also be enrolled in the White House’s new Saving on a Valuable Education (SAVE) repayment plan.
Among the 74,000 borrowers approved for debt relief, nearly 44,000 are teachers, nurses, firefighters, social workers, and public servants with at least 10 years of service. The remaining 30,000 borrowers have been making payments on their loans for at least 20 years, but did not receive relief through income-driven repayment plans.
The categories covered by the relief unveiled on Friday include:
According to the administration, faulty payment counts in previous calculations meant that some borrowers weren’t progressing towards loan forgiveness. Currently, approximately 6.9 million borrowers are enrolled in the new IDR plan, with approximately 3.9 million of them having monthly payments of $0.
This latest round of student loan forgiveness is part of President Biden’s ongoing efforts to alleviate the burden of student debt on American individuals and families. By targeting specific groups such as teachers, nurses, and firefighters, the administration aims to provide relief to those in public service roles who have made significant contributions to their communities. The adjustments made to the income-driven repayment plans and Public Service Loan Forgiveness program will help ensure that borrowers’ payments are accurately accounted for and facilitate a smoother process for debt relief.
The Biden administration’s commitment to relieving student loan debt remains a key component of its agenda, as it seeks to address the financial challenges faced by many Americans. The announcement of $5 billion in additional debt forgiveness demonstrates their dedication to finding solutions that will enable individuals to pursue their financial goals and contribute to the economy without the burden of excessive student loan debt.
