President Joe Biden announced that his administration will forgive $7.4 billion in student loan debt for 277,000 borrowers. This forgiveness is a result of recent changes and improved oversight of income-driven repayment plans and the popular Public Service Loan Forgiveness program by the U.S. Department of Education. The $7.4 billion in forgiveness is being distributed among different groups of borrowers, with more than 206,000 beneficiaries receiving $3.6 billion in debt relief through the new Saving on a Valuable Education (SAVE) plan.
For those who originally borrowed small amounts for college, the SAVE plan allows for quicker debt forgiveness than other income-driven repayment plans. Additionally, over 65,000 borrowers will have their loans canceled through enhancements to the Department of Education’s income-driven repayment plans, and 4,600 borrowers are benefiting from improvements to the government’s loan forgiveness program for public servants. This round of debt forgiveness aims to provide significant financial relief to borrowers struggling with student loan debt, totaling $7.4 billion in forgiveness across various groups of borrowers who will benefit from the Biden administration’s initiatives to ease the burden of student loan debt.