In a recent development, President Joe Biden has announced the approval of the forgiveness of an additional $9 billion in student loans. This move is set to provide relief to approximately 125,000 borrowers. It comes as a response to the U.S. Supreme Court’s rejection of the administration’s broad cancellation efforts back in June.
The forgiven loans will benefit various groups of borrowers. This includes individuals enrolled in the Public Service Loan Forgiveness program, those who have made 20 years or more of payments through an income-driven repayment plan but have yet to receive the relief they qualify for, and borrowers with total or permanent disabilities who have been identified and approved for discharge through a data match with the Social Security Administration.
With this latest announcement, the Biden administration’s approved debt cancellation amounts to a staggering $127 billion, benefiting nearly 3.6 million borrowers across the nation. However, as the administration continues to address the backlog of eligible borrowers under the income-driven repayment plan and the Public Service Loan Forgiveness program, the volume of future cancellations may gradually decrease.
Student Loan Forgiveness Efforts Continue
A Different Approach
A Narrower Focus
A document released by the Education Department indicates the new proposal may target a narrower segment of borrowers than the prior proposal. This includes those whose loans entered repayment decades ago and those whose financial difficulties haven’t been adequately addressed by the student loan system.
Concerns Amid Resuming Payments
These efforts come as federal student loan payments resume this month amid broad concerns about many borrowers’ ability to make their payments.