President Biden has announced an additional $5 billion in student loan forgiveness, benefiting another 74,000 Americans, including professionals such as teachers, nurses, and firefighters. This development is part of ongoing efforts to rectify issues within the student loan system, particularly after the Supreme Court's blockage of a broader loan forgiveness program last summer.
The total amount of debt forgiven under the Biden administration now reaches $136.6 billion, aiding over 3.7 million borrowers. This latest round of forgiveness results from improvements in the administration's handling of income-driven repayment (IDR) forgiveness and Public Service Loan Forgiveness (PSLF) programs. The Department of Education has made strides in more accurately counting payments towards these forgiveness programs.
Key aspects of this new relief include:
The breakdown of the $5 billion relief includes:
The Education Department has addressed issues with incorrect payment counts that previously hindered borrowers' progress towards loan forgiveness. Regarding the SAVE plan, approximately 6.9 million borrowers are enrolled, with about 3.9 million of these having monthly payments of $0.