The Biden-Harris Administration has announced new measures to forgive federal student loans, impacting public servants, borrowers with disabilities, and those who attended colleges found guilty of misconduct. Since taking office, the administration has introduced 28 debt relief actions totaling $183.6 billion for over 5 million borrowers.
U.S. Secretary of Education Miguel Cardona stated, “Four years ago, President Biden made a promise to fix a broken student loan system. Today, life-changing student debt relief is possible for more than five million borrowers—more than any other administration in history.” He emphasized the efforts made to create an affordable and accountable system for students and taxpayers.
The U.S. Department of Education approved several types of discharges in this latest announcement. Public Service Loan Forgiveness (PSLF) was granted to 6,100 borrowers totaling $465 million. Nearly 85,000 borrowers received $1.26 billion in relief based on borrower defense findings, including automatic discharges for groups affected by similar misconduct. Additionally, $2.5 billion was allocated for 61,000 borrowers with total and permanent disabilities.
James Kvaal, U.S. Under Secretary of Education remarked, “Identifying 5 million people for student loan forgiveness means the federal government is finally keeping its promises.”
New PSLF approvals have significantly increased since the administration began its term. Currently, 1,069,000 borrowers have been approved under PSLF amounting to $78.46 billion compared to just 7,000 at the start.
Borrower defense group relief includes actions against institutions like the Center for Excellence in Higher Education (CEHE), Drake College of Business, and Lincoln Technical Institute's Criminal Justice Program due to misrepresentations and misleading practices.
Furthermore, disability discharges have been expanded with an additional approval of $2.5 billion for 61,000 borrowers through data matches with relevant agencies or direct applications.
Overall support from the Biden-Harris Administration extends beyond these recent measures with $56.5 billion approved through Income-Driven Repayment plans benefiting over 1.4 million borrowers alongside initiatives aimed at increasing educational opportunities without financial burdens.
