Emma Wordsmith
New report from the Department of Education reveals the impact of four major discharge program proposals on 4 million borrowers already approved for relief
The Biden-Harris Administration today unveiled details of new plans aimed at providing student debt relief to tens of millions of borrowers nationwide. These initiatives would make more than 30 million borrowers eligible for debt relief, encompassing the 4 million already granted relief over the past three years. The public will have the opportunity to weigh in on these plans in the upcoming weeks.
The U.S. Department of Education is also disclosing state-by-state totals for approved discharge under key student loan forgiveness programs, including Public Service Loan Forgiveness (PSLF), Income-Driven Repayment (IDR), Saving On A Valuable Education (SAVE), and Total and Permanent Disability (TPD).
U.S. Secretary of Education Miguel Cardona emphasized that the Biden-Harris Administration’s comprehensive student loan initiatives are making a positive difference nationwide. The Administration’s dedication to assisting as many borrowers as possible swiftly aims to provide financial relief and mend the higher education system.
The new proposals introduced by President Biden signify the evolution of a regulatory process initiated last summer to swiftly provide debt relief under the Higher Education Act. These measures include:
– Reducing accrued and capitalized interest for millions of borrowers: The plan includes cancelling up to $20,000 of interest accrued after entering repayment, benefiting low and middle-income borrowers in IDR or SAVE plans without the need for an application.
– Automatic discharge of debt for eligible borrowers: The proposal would automatically cancel debt for qualified borrowers under various forgiveness programs, overcoming historical bureaucratic hurdles some borrowers faced.
– Elimination of student debt for longtime borrowers: Borrowers with student loans for 20 years or more could qualify for forgiveness under this proposal, irrespective of income-driven repayment plans.
– Aid to borrowers with low-value program debts: The plan would waive loans for borrowers who enrolled in ineligible institutions or programs or faced financial detriment due to such institutions.
– Assistance for borrowers facing repayment hardships: The Administration is committed to assisting borrowers facing difficulties in repaying their loans, inclusive of automatic forgiveness and individualized application processes.
“President Biden’s resolve to alleviate student debt and improve access to higher education is evident in these monumental initiatives,” remarked U.S. Under Secretary of Education James Kvaal. “We are dedicated to implementing these programs promptly and effectively.”
New State-by-State Figures on Relief Efforts
The latest data released by the Department showcases the impact of approved relief totaling $146 billion for 4 million borrowers across the country.
The statistics detailed include the statewide outcomes of four major programs under the Biden-Harris Administration:
– Income-Driven Repayment Forgiveness: Providing nearly $46 billion in relief to over 930,000 borrowers previously struggling to receive forgiveness.
– Public Service Loan Forgiveness: Allocating $62.5 billion for close to 872,000 borrowers who were promised relief under PSLF.
– SAVE Early Forgiveness: Offering $1.2 billion in loans for nearly 153,000 eligible borrowers benefiting from the SAVE Plan’s expedited forgiveness.
– Total and Permanent Disability Discharge: Providing $14.1 billion in relief to 548,300 borrowers through streamlined processes under the Biden-Harris Administration.
Unprecedented Support for Borrowers
The Administration’s efforts have resulted in substantial relief for borrowers nationwide, with significant financial aid and protection measures in place to ensure students and families are not burdened by student loan debt.
Moreover, the Administration has approved $22.5 billion for over 1.3 million borrowers impacted by school fraud, closures, and related injustices.
State-by-State Borrower Relief Summary
The following table illustrates relief provided across all states and territories through IDR, SAVE Forgiveness, PSLF, and TPD initiatives:
|
Total Across IDR, SAVE Forgiveness, PSLF, and TPD |
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|---|---|---|
|
State |
Borrower Count |
Outstanding Balance (in millions) |
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