Biden Announces $5 Billion In Student Loan Forgiveness – President Biden on Friday canceled nearly $5 billion in student loan debt for 74,000 people, the latest effort by the administration to deliver piecemeal relief after the Supreme Court struck down Mr. Biden’s more ambitious loan cancellation plan last year.
In a move aimed at addressing the long-standing issues plaguing the U.S. student loan system, the Biden administration announced Friday that it approved an additional $4.9 billion in student loan debt relief for 73,600 borrowers. This announcement, which brings the total loan forgiveness approved by the administration to $136.6 billion for more than 3.7 million Americans, reflects the ongoing efforts to provide relief to student loan borrowers.
6 Ways To Find Unclaimed Money
The discharges are the result of fixes to income-driven repayment (IDR) forgiveness and Public Service Loan Forgiveness (PSLF). According to U.S. Secretary of Education Miguel Cardona, the nearly $5 billion in additional debt relief will benefit teachers, social workers and other public servants who have earned PSLF. It will also assist borrowers qualifying for income-driven repayment forgiveness due to the accurate accounting of their payments, the administration says.
But while the new round of student loan forgiveness will provide welcome relief to tens of thousands of borrowers, not everyone will qualify. So what can you do if you don’t qualify for this round of student loan forgiveness but still need relief from your student loan payments? The good news is that you have options to consider.
What to do if you don’t qualify for student loan forgiveness:
The debt relief announced today by the Biden-Harris Administration is categorized as follows:
$1.7 billion for 29,700 borrowers through administrative adjustments to IDR payment counts: These adjustments bring borrowers closer to forgiveness and address concerns regarding the misuse of forbearance by loan servicers.
$3.2 billion for 43,900 borrowers through PSLF: This includes borrowers benefiting from the limited PSLF waiver and regulatory improvements made to the program by the Administration.
