More than 30 million student loan borrowers could be eligible for some form of debt relief, as indicated by the U.S. Department of Education (ED). This figure includes four million borrowers who have already received debt cancellation. The public will be given an opportunity to voice their opinions before the initiative is finalized.
In a news release from the ED, it was revealed that state-by-state totals for accepted discharge across four major existing student loan forgiveness plans will also be published. These plans include Public Service Loan Forgiveness (PSLF), Income-Driven Repayment (IDR), Saving On A Valuable Education (SAVE), and Total and Permanent Disability (TPD).
U.S. Secretary of Education Miguel Cardona stated, "These state-by-state numbers show the Biden-Harris Administration’s historic student loan efforts are already improving lives in every part of the country." He further added, "Thanks to our unapologetic commitment to provide relief to as many borrowers as possible as quickly as possible, our regulatory efforts would help tens of millions more borrowers find financial breathing room—and help fix our country’s broken higher education system."
This announcement is part of a broader White House measure aimed at providing debt relief to a maximum number of student loan borrowers, according to the news release. The proposed initiative would encompass waivers that eliminate student debt for borrowers in repayment for 20 years or more; automatically discharge debt for borrowers eligible under loan forgiveness programs; waive accrued and capitalized interest for millions of borrowers; assist those experiencing hardship in repaying their loans; and support those who enrolled in low-financial-value programs or institutions.
U.S. Under Secretary of Education James Kvaal said, "These historic steps reflect President Biden’s determination that we cannot allow student debt to leave students worse off than before they went to college." He further mentioned, "The President directed us to complete these programs as quickly as possible, and we are going to do just that."
