Biden-Harris Administration approves an extra $7.7 billion in student debt relief for 160,000 borrowers

The Biden-Harris Administration revealed today the green light for an additional $7.7 billion in student loan debt relief for 160,500 borrowers. The discharges target three specific borrower categories: those benefiting from Public Service Loan Forgiveness (PSLF), those enrolled in President Biden’s Saving on a Valuable Education (SAVE) Plan with eligibility for its accelerated time-to-forgiveness feature, and individuals receiving forgiveness on income-driven repayment (IDR) due to modifications executed by the Administration. Over 8 million borrowers have already benefited from the SAVE Plan, including 4.6 million enjoying a $0 monthly payment.

With this recent announcement, the total loan forgiveness granted by the Biden-Harris Administration climbs to $167 billion for 4.75 million Americans. More than 10% of federal student loan holders have now received approval for debt relief, thanks to the efforts of President Biden and his team in swiftly assisting borrowers with their financial obligations.

“The Biden-Harris Administration’s unrelenting commitment to providing student debt relief to millions nationwide remains steadfast, as evidenced by this announcement,” stated U.S. Secretary of Education Miguel Cardona. “Approving debt relief for one out of every 10 federal student loan borrowers signifies substantial financial relief and a welcome burden alleviation.”

The U.S. Department of Education recently provided an update on the adjustment of payment counts to ensure borrowers receive proper credit for progress made toward IDR forgiveness and PSLF. Borrowers considering consolidation now have until June 30, 2024, to apply. For more information on payment count adjustments, click here.

The $7.7 billion debt relief package is divided into the following segments:

“An additional 160,000 borrowers and their families will experience much-needed relief thanks to the ongoing efforts of the Biden-Harris Administration,” noted U.S. Under Secretary of Education James Kvaal. “We applaud these borrowers on their rightful forgiveness and continue to strive towards delivering relief to others.”