Biden Administration Cancels $12 Billion in Student Loan Debt
153,000 Borrowers to Benefit from Automatic Discharge
Public Service Loan Forgiveness and Other Programs Utilized
Washington, D.C. - The Biden-Harris Administration has announced that it will automatically discharge $12 billion in loans for nearly 153,000 borrowers. This relief is being provided through existing student loan forgiveness programs, including the Public Service Loan Forgiveness (PSLF) Program.
The PSLF Program allows borrowers who have made 10 years of qualifying payments while working in public service to have the remaining balance of their Direct Loans forgiven. The administration has made significant changes to the program to make it easier for borrowers to qualify, including waiving the requirement for a certain number of consecutive payments and counting past periods of repayment deferment and forbearance towards forgiveness.
In addition to the PSLF Program, the administration is also using other existing programs to provide student loan relief. These programs include the Borrower Defense to Repayment program, which provides relief to borrowers who were defrauded by their schools, and the Total and Permanent Disability discharge, which provides relief to borrowers who are unable to work due to a disability.
The administration estimates that the latest round of student loan forgiveness will save borrowers an average of $7,900 each. The relief will also help to close the racial wealth gap, as Black and Latino borrowers are more likely to have student loan debt than White borrowers.
"This is a landmark day for student loan borrowers," said U.S. Secretary of Education Miguel Cardona. "We are committed to making college more affordable and accessible, and this action will help hundreds of thousands of Americans achieve their dreams."
Borrowers who believe they may qualify for student loan forgiveness are encouraged to visit the Federal Student Aid website (studentaid.gov) for more information.
Comments