Biden announces plans to eliminate $9B in student debt

Biden student debt overview: 

• Who: President Joe Biden’s administration announced $9 billion in student loan debt relief for 125,000 Americans.
• Why: The student loan relief comes because the student loan system is broken, according to a statement from the Biden administration
• Where: The Biden student debt program is valid across the United States.

President Joe Biden announced $9 billion more in student loan debt relief for 125,000 Americans because of what he calls a broken student loan system.

The relief includes $5.2 billion in additional debt relief for 53,000 borrowers under Public Service Loan Forgiveness programs, nearly $2.8 billion in new debt relief for nearly 51,000 borrowers through fixes to income-driven repayment and $1.2 billion for nearly 22,000 borrowers who have a total or permanent disability, according to a White House statement.

The debt relief is part of $127 billion in debt cancellation for nearly 3.6 million borrowers overall under the Biden administration.

Earlier this year, the Supreme Court declined to block the settlement of a class action lawsuit that would provide $6 billion in student loan forgiveness to individuals across the country.

That settlement involved more than 150 schools that were part of claims dating back to 2015 where former students told the U.S. Department of Education that their schools misled them. 

Debt relief will go to borrowers who made payments for 20 years without appropriate relief

The new $2.8 billion portion of the debt relief will go to borrowers who made 20 years or more of payments but never got appropriate debt relief. The 22,000 borrowers with disability expected to get relief were identified and approved for the debt discharge through a data match with the Social Security Administration.

“President Biden has long believed that college should be a ticket to the middle class, not a burden that weighs on families,” a White House statement said. “That’s why from day one, his administration has taken unprecedented steps to fix the broken student loan system, make college more affordable, and bring the promise of higher education in reach for more Americans.”

The Biden administration recently announced a new plan, dubbed the Saving on a Valuable Education (SAVE) plan, that will offer income-based relief to student loan borrowers.

Have you received student loan forgiveness from the Biden administration? Let us know in the comments.

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