President Biden announced Wednesday that his administration approved $4.8 billion in student loan debt relief for more than 80K borrowers.
“Before President Biden took office, it was virtually impossible for eligible borrowers to access the student debt relief they rightfully earned,” U.S. Secretary of Education Miguel Cardona said in a statement. “This level of debt relief is unparalleled and we have no intention of slowing down.”
The debt cancellation was approved under changes to the DOE’s income-repayment plans and the Public Service Loan Forgiveness program, which considers loans repaid after a particular amount of time.
The latest announcement comes nearly fives months after Biden’s Student Loan Forgiveness Plan took a heavy strike from the Supreme Court this past June. The SCOTUS decision denied about 40 million borrowers who accounted for nearly a half a trillion of student loan debt.
“I believe that the court’s decision to strike down our student debt relief plan is wrong. But I will stop at nothing to find other ways to deliver relief to hard-working middle-class families. My administration will continue to work to bring the promise of higher education to every American. The fight is not over.” – Statement from President Biden on June 30th.
Federal loan payments resumed this fall after being paused due to the COVID-19 pandemic.
Though Biden’s campaign promise to forgive student loan debt was upended by the Supreme Court, the administration has made smaller, but significant strides in providing relief to millions of borrowers.
The DOE plans to meet next week to discuss the final round of policy negotiations regarding borrowers with “hardships”, such as bankruptcy or chronic illnesses eligible for special relief.
