In the latest move by the Biden-Harris Administration to tackle the student loan crisis, President Joe Biden has revealed a $7.4 billion debt forgiveness plan that will benefit 277,000 Americans, marking another stride towards lessening the financial burden on former students.
The White House announced that this new round includes individuals in the SAVE Plan and other Income-Driven Repayment plans, as well as those qualifying for Public Service Loan Forgiveness despite a Supreme Court decision last year that has complicated direct pathways to widespread debt cancellation, the Administration continues to find avenues to provide relief; the mentioned measures have now granted a cumulative $153 billion in canceled student debt to 4.3 million Americans.
The SAVE Plan, launched by the Administration last year and described as the most affordable repayment plan to date, currently aids 8 million borrowers. Half of them benefit from a zero-dollar monthly payment, and an additional million pay less than $100 per month, according to information found on StudentAid.gov.
In total, since President Biden's inauguration, his Administration has approved more than $54 billion in debt cancellation for borrowers enrolled in income-driven plans, on top of canceling student debt for populations like the nearly 900,000 public service workers, 1.3 million defrauded students, and the 550,000 borrowers recognized as totally and permanently disabled which has ensured a foothold of support for individuals who have shouldered the weight of financial duress post-education.
Despite the ongoing legal challenges and the search for new policy avenues, President Biden affirms the Administration's dedication to expanding student debt relief, as further described in this week's announcements, which highlight a commitment to explore every potential path to provide widespread debt forgiveness to students shackled by loans. More details about future plans and current debt relief initiatives can be found at StudentAid.gov/DebtRelief.
