The Biden Administration Approves $4.9 Billion in Additional Student Loan Debt Relief, Totaling $136.6 Billion for 3.7 Million Americans

The Biden-Harris Administration has approved $4.9 billion in additional student loan debt relief for 73,600 borrowers, a significant step toward addressing the nation’s student loan system’s challenges. The total amount of loan forgiveness approved by the administration now stands at $136.6 billion, benefiting more than 3.7 million Americans.

U.S. Secretary of Education Miguel Cardona emphasized the administration’s commitment to fixing the student loan system, stating that the debt relief would benefit teachers, social workers, and other public servants who have received Public Service Loan Forgiveness (PSLF). Cardona credited President Biden’s leadership for approving this relief and emphasized the administration’s commitment to providing even more debt relief through the new, affordable SAVE repayment plan.

The $4.9 billion relief includes $1.7 billion for 29,700 borrowers who received administrative adjustments to their Income-Driven Repayment (IDR) payment amounts. This addresses concerns about loan servicers misusing forbearance and moves borrowers closer to forgiveness. The Biden-Harris Administration has now granted $45.7 billion in IDR relief to 930,500 borrowers.

Furthermore, $3.2 billion is set aside for 43,900 borrowers under the Public Service Loan Forgiveness (PSLF) program. The relief includes beneficiaries of the administration’s limited PSLF waiver and regulatory improvements. Since October 2021, 793,400 borrowers have received $56.7 billion in relief through the PSLF.

The U.S. Under Secretary of Education, James Kvaal emphasized the administration’s commitment to assisting borrowers who had planned their lives around loan promises, emphasizing that the administration will continue to work until all those harmed by the broken student loan system are assisted.

Notably, the Biden-Harris administration is accelerating additional loan forgiveness by launching the Saving on a Valuable Education (SAVE) Plan early. Borrowers who borrowed $12,000 or less for college and are enrolled in the SAVE Plan may be forgiven after as few as ten years of payments. The Department of Education is actively communicating with eligible borrowers and collaborating with partners to increase enrollment in the SAVE Plan.

The administration’s track record of borrower assistance goes beyond IDR and PSLF relief, including significant approvals for borrowers with a total and permanent disability and those affected by school closures or misconduct.

As the administration works to alleviate the burden of student debt, borrowers are encouraged to look into additional resources and sign up for the SAVE plan at StudentAid.gov/Save. The Biden-Harris administration remains steadfast in its commitment to ensuring that student loans do not limit students’ and families’ opportunities.