The Biden administration has announced an additional $4.8 billion in student loan forgiveness, bringing the total approved amount to $132 billion for over 3.6 million Americans. This relief is a result of fixes made to the income-driven repayment (IDR) forgiveness and Public Service Loan Forgiveness (PSLF) programs by the U.S. Department of Education. President Joe Biden has expressed his commitment to improving the student loan system and providing relief to borrowers.
The IDR fixes have resulted in $2.2 billion in student loan forgiveness for nearly 46,000 borrowers. These fixes aim to provide borrowers with an accurate count of progress toward forgiveness and address concerns about misuse of forbearance. The Biden administration has now approved almost $44 billion in IDR relief for nearly 901,000 borrowers.
Another $2.6 billion in debt was forgiven for 34,400 borrowers through the PSLF program. This includes borrowers who have benefited from the limited PSLF waiver and ongoing regulatory improvements. The PSLF program offers debt relief to borrowers who have pursued roles in non-profit or governmental fields.
It's important to note that this relief only applies to federal student loans. Borrowers with private student loans will not benefit from federal relief. However, they may consider refinancing their loans for a lower interest rate to lower their monthly payments.
Despite the significant amount of student loan relief provided by the Biden administration, it's worth mentioning that their broader student loan forgiveness plan was blocked by the Supreme Court. President Biden has vowed to develop an alternative forgiveness plan that would provide relief to millions more borrowers.
While the Biden administration has made efforts to improve the student loan system and provide relief to borrowers, there are critics who argue that the plan needs to be more far-reaching. The Department of Education has released a proposal suggesting providing up to $10,000 of relief to all borrowers who have experienced balance growth due to interest.
It's important for borrowers to stay informed about their eligibility for student loan forgiveness and explore options for managing their loans. For those struggling with private student loan payments, refinancing may be a potential solution. Borrowers can seek guidance from student loan experts to understand their options and make informed decisions.