Biden to cancel $7.7 billion in student debt for 160K borrowers
The Biden administration announced a new round of student debt cancellation plans Wednesday, saying that its latest tranche of relief would extend to 160,000 borrowers.
President Joe Biden announced a new round of federal student debt forgiveness Wednesday that his administration said will provide relief to 160,000 borrowers.
The Education Department said it's canceling $7.7 billion for certain borrowers who received Public Service Loan Forgiveness, like teachers, nurses and law enforcement officials.
The debt relief also applies to some borrowers who signed up for a relatively new income-driven repayment plan known as SAVE and who qualify for a benefit that affords "shortened time-to-forgiveness," as well as borrowers who are receiving relief because of other adjustments to income-driven repayment.
The Education Department said the approved debt cancellation includes $5.2 billion for nearly 67,000 borrowers as a result of changes to Public Service Loan Forgiveness, $613 million for more than 54,000 borrowers through the SAVE Plan and $1.9 billion for over 39,000 borrowers through administrative adjustments to income-driven repayment counts.
The latest announcement comes after a broader effort to reduce student debt failed. The Supreme Court last year rejected Biden’s pandemic-era debt relief plan, which aimed to erase up to $20,000 in student debt for about 43 million borrowers.
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