Student Loan Forgiveness

Student Loan Relief Update

One-Time Debt Relief Plan Blocked

The Supreme Court has blocked the Biden administration's one-time debt relief plan, which was intended to forgive up to $20,000 in federal student debt for Pell Grant borrowers and up to $10,000 for non-Pell Grant borrowers. The plan was challenged in court by six Republican-led states, which argued that the administration did not have the authority to enact the plan without congressional approval.

Public Service Loan Forgiveness Program Changes

Federal Student Aid has implemented regulatory changes to the Public Service Loan Forgiveness (PSLF) Program, effective July 1, 2023. Under the new rules, borrowers who have worked in public service for at least 10 years can receive forgiveness for their remaining federal student loans, regardless of their loan repayment plan or the type of federal loans they have. Previously, borrowers had to be enrolled in an income-driven repayment plan and make 120 qualifying payments to qualify for forgiveness.

Additional Student Loan Debt Relief

The Biden-Harris Administration has announced the approval of $58 billion in additional student loan debt relief for more than 777,000 borrowers. The relief includes $49 billion for borrowers who have attended schools that have closed or engaged in misconduct, and $9 billion for disabled borrowers. This brings the total amount of student loan debt forgiveness approved by the Biden administration to over $200 billion.

Conclusion

The Supreme Court's decision to block the one-time debt relief plan is a setback for the Biden administration's efforts to provide student loan relief. However, the administration continues to make progress in implementing other student loan forgiveness programs, including the PSLF Program and the relief for borrowers who have attended closed or fraudulent schools.