During the past three years, the Biden administration has approved over $160 billion in loan forgiveness, which accounts for around 10% of the total outstanding student debt.
Student Loan Forgiveness Expanded
The Education Department has successfully utilized executive authority to update, expand, or relax regulations governing various loan forgiveness programs, resulting in the cancellation of student loan debt for at least 4.6 million borrowers.
Here are some things that are included, according to USA Today:
The long-standing income-driven repayment plan concerns are being addressed by the IDR Account Adjustment, which is offering about $50 billion in loan forgiveness. Many student loan borrowers will qualify in the coming months as the Education Department completes its implementation. Nearly one million borrowers have already benefited.
Public Service Loan Forgiveness program adjustments and enhancements have forgiven approximately $60 billion for nearly 900,000 nonprofit and government workers. PSLF clearances increased significantly from 2020.
An income-driven option offers cheaper payments and faster debt relief under Biden's new SAVE proposal. This function provides over $5 billion in debt reduction, helping many people.
Due to recent regulatory improvements that make relief simpler for disabled debtors, over $14 billion in discharges have been given.
Biden Targets Misconduct-Tied Debt for Forgiveness
Biden's latest group discharge approval targets borrowers who attended schools accused of widespread misconduct. Offering debt relief to these borrowers has been an important part of the administration's comprehensive strategy to implement student loan forgiveness programs.
Meanwhile, the Education Department is making progress towards the launch of a new mass student debt cancellation program.
According to Forbes, the Biden administration has granted over $28 billion in student loan forgiveness to 1.6 million borrowers who suffered due to their schools' actions, such as misrepresentations or closures. This relief has been approved by the Education Department through various existing programs and court settlements.
Based on recent data, the total amount of student loan debt in the U.S. has surpassed $1.77 trillion as of the first quarter of 2023.
The majority of this debt, over 92%, is from federal student loans, with the remaining balance being owed on private student loans, as reported by Federal Student Aid, an office of the Department of Education.
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