President Biden Announces $74 Billion in Student Loan Forgiveness
Latest Round of Debt Relief Benefits 777,000 Borrowers
Existing Loan Forgiveness Programs Utilized
Washington, D.C. - The Biden administration announced today the approval of $58 billion in additional student loan debt relief for 777,000 borrowers. This latest round of forgiveness is part of the ongoing effort by the administration to provide relief to borrowers struggling under the weight of student loan debt.
The debt forgiveness will be provided through existing student loan forgiveness programs, including the Public Service Loan Forgiveness Program (PSLF) and the Teacher Loan Forgiveness Program. These programs provide forgiveness to borrowers who meet certain eligibility requirements, such as working in public service or teaching in a low-income school.
President Biden's first student loan forgiveness plan, announced earlier this year, provided forgiveness to borrowers earning less than $125,000 per year. The new round of forgiveness announced today expands eligibility to include borrowers earning up to $250,000 per year. Borrowers who have already received forgiveness under the previous plan may be eligible for additional forgiveness under this new plan.
The Department of Education will implement the remaining full benefits of the SAVE Plan in July 2024, which will further reduce monthly payments from eligible borrowers. The SAVE Plan, which stands for Student Aid and Fiscal Responsibility Act, was enacted in 2010 and provides several benefits to student loan borrowers, including income-driven repayment plans and loan forgiveness programs.
The Biden administration's commitment to student loan forgiveness is part of its broader effort to make higher education more affordable and accessible. The administration has also proposed several other measures to provide relief to student loan borrowers, including increasing the Pell Grant maximum and making it easier for borrowers to refinance their loans.
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