The Biden-Harris Administration announced the approval of $7.7 billion in additional student loan debt relief for 160,500 borrowers. This relief covers three categories: Public Service Loan Forgiveness (PSLF), President Biden’s Saving on a Valuable Education (SAVE) Plan, and income-driven repayment (IDR) adjustments. The SAVE Plan has assisted over 8 million borrowers, including 4.6 million with a $0 monthly payment.
This latest action brings the total loan forgiveness approved by the Administration to $167 billion for 4.75 million Americans. U.S. Secretary of Education Miguel Cardona stated, “One out of every 10 federal student loan borrowers approved for debt relief means one out of every 10 borrowers now has financial breathing room and a burden lifted.”
The U.S. Department of Education also updated the timing for payment count adjustments, ensuring borrowers receive credit toward IDR forgiveness and PSLF. Borrowers can consolidate until June 30, 2024.
Today's announcement includes:
- $5.2 billion for 66,900 borrowers through PSLF fixes.
- $613 million for 54,300 borrowers via the SAVE Plan.
- $1.9 billion for 39,200 borrowers through IDR payment count adjustments.
U.S. Under Secretary of Education James Kvaal commented, “Another 160,000 borrowers and their families will get some much-needed relief thanks to the continued efforts [of] the Biden-Harris Administration to fix the broken student loan system.”
A recent report by the Council of Economic Advisers suggests that these discharges could boost short-term consumption and positively impact borrower mental health and financial security.
In April, initial details were released about new plans aimed at providing debt relief to tens of millions more borrowers. These proposals include waiving accrued interest, automatically discharging debt under certain conditions, eliminating debt for long-term repayment borrowers, assisting those in low-value programs or institutions, and aiding those facing hardship.
Public comments on these plans closed on May 17, with a final rule expected this fall.
Beyond IDR and PSLF reliefs, other measures include:
- $28.7 billion for over 1.6 million defrauded or affected students.
- $14.1 billion for more than 548,000 permanently disabled borrowers.
An updated state-by-state breakdown of approved forgiveness is available online.
