Tue. Jun 18th, 2024

Biden to cancel $7.7 billion in student debt for 160K borrowers

By 37ci3 May22,2024

President Joe Biden announced new round federal student debt forgiveness His administration announced this on Wednesday will provide relief 160,000 to borrowers.

The Education Department said it canceled $7.7 billion for some borrowers who received Public Service Loan Forgiveness, such as teachers, nurses and law enforcement officers.

Debt relief also applies to some borrowers who sign up for a relatively new income-based repayment plan. Known as SAVE and borrowers eligible for benefits that provide a “shortened grace period” as well as other adjustments to income-based payments.

According to the Department of Education, approved debt relief is $5.2 billion for about 67,000 borrowers through changes to Public Service Loan Forgiveness, $613 million for more than 54,000 borrowers through the SAVE Plan, and $1.1 million for more than 39,000 borrowers through administrative adjustments to income. .9 billion dollars included. justified payments.

The latest announcement follows the failure of a broader effort to reduce student debt. Supreme Court last year Rejected Biden’s pandemic debt relief planAiming to eliminate up to $20,000 in student debt for approximately 43 million borrowers.

A total of 4.75 million people benefited from debt relief, according to the Education Department, which added that the administration has now approved $167 billion in loan forgiveness.

Education Secretary Miguel Cardona said in a statement Wednesday that the administration is “persevering” with efforts to “relieve millions more of student debt across the country.”

Biden also touted debt relief in a statement, saying, “No matter how much Republican elected officials try to stop us, I will not stop working to eliminate student debt.”

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By 37ci3

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