Biden-Harris Administration Approves Additional $7.7 Billion in Student Debt Relief

In a continued effort to provide financial relief to student loan borrowers, the Biden-Harris Administration has announced the approval of $7.7 billion in additional student loan debt relief for 160,500 borrowers. This latest round of discharges includes borrowers receiving Public Service Loan Forgiveness (PSLF), participants in President Biden’s Saving on a Valuable Education (SAVE) Plan, and those benefiting from adjustments to income-driven repayment (IDR) plans.

Public Service Loan Forgiveness (PSLF)

The administration has approved $5.2 billion for 66,900 borrowers under the PSLF program. This brings the total forgiveness through PSLF to $68 billion for more than 942,000 borrowers. PSLF aims to support those working in public service by canceling remaining student debt after 120 qualifying monthly payments.

SAVE Plan

The SAVE Plan has seen $613 million approved for 54,300 borrowers. This plan offers relief to borrowers with smaller loans and provides forgiveness after a minimum of 10 years of payments for loans of $12,000 or less. Total relief under this plan now stands at $5.5 billion for 414,000 borrowers.

Income-Driven Repayment (IDR) Adjustments

Through administrative adjustments to IDR payment counts, $1.9 billion has been approved for 39,200 borrowers. Including this announcement, the total IDR relief approved is $51 billion for over 1 million borrowers. IDR plans help borrowers by capping their monthly payments based on income and family size.

Impact and Reach

The announcement brings the total loan forgiveness approved by the Biden-Harris Administration to $167 billion for 4.75 million Americans. This means that more than one out of every ten federal student loan borrowers has now been approved for some form of debt relief. The administration's actions have significantly lightened the financial burden on these borrowers, providing them with much-needed financial breathing room.

State-by-State Breakdown

The attached data provides a detailed state-by-state breakdown of the borrowers who have been approved for forgiveness under IDR and the SAVE Plan. Here are some key figures:

• California: 81,450 borrowers approved for $6,162.8 million in debt relief.
• Texas: 61,040 borrowers approved for $4,348.6 million in debt relief.
• Florida: 52,230 borrowers approved for $4,338.2 million in debt relief.

Future Plans

In addition to the current relief efforts, the Biden-Harris Administration has outlined new plans to deliver further debt relief to tens of millions of Americans. These proposals, which are part of a regulatory process that began last summer, aim to:

• Waive accrued and capitalized interest for millions of borrowers.
• Automatically discharge debt for eligible borrowers.
• Eliminate student debt for borrowers who entered repayment 20 or more years ago.
• Assist borrowers who enrolled in low-financial-value programs or institutions.
• Help borrowers experiencing hardship in making payments.

Public comments on the first set of these plans closed on May 17, and the Department of Education is reviewing them to publish a final rule later this year.

Conclusion

The Biden-Harris Administration remains committed to easing the burden of student debt for millions of Americans. Through targeted relief efforts and new regulatory plans, they aim to provide substantial financial relief and support to borrowers, ensuring that student loans do not hinder opportunities for students and families across the country.