Student Loan Forgiveness Update Today

Biden Administration Cancels $12 Billion in Student Debt for 153,000 Borrowers

Breaking Down Biden's New Student Debt Relief Plans

August 2020

President Joe Biden has announced a new round of student debt forgiveness, this time totaling $12 billion for nearly 153,000 borrowers. The announcement comes as part of the Biden-Harris Administration's ongoing efforts to address the student debt crisis, which has seen the average borrower owe over $30,000 in student loans. The new relief will be provided through the existing Student Loan Forgiveness Program (SLFP), which allows borrowers to have their federal student loans forgiven after making a certain number of qualifying payments. The SLFP has been expanded under the Biden-Harris Administration, and borrowers will now be eligible to have their loans forgiven after making 120 qualifying payments, down from the previous requirement of 240 payments. In addition to expanding the SLFP, the Biden-Harris Administration has also identified nearly 153,000 borrowers who are enrolled in the Student Aid Volunteer Education (SAVE) program that will have their debt automatically discharged. The SAVE program provides student loan forgiveness to individuals who volunteer at least 3,600 hours at eligible organizations. The new student debt relief measures are part of the Biden-Harris Administration's broader efforts to address the economic challenges facing Americans. The Administration has also proposed a number of other measures, such as increasing the minimum wage and expanding access to affordable housing, to help working families.

The announcement of the new student debt relief measures has been met with praise from Democratic lawmakers and consumer advocates. However, Republicans have criticized the measures, arguing that they will be too costly and will not be effective in addressing the underlying causes of the student debt crisis.

The Biden-Harris Administration has defended the new measures, arguing that they are necessary to help address the student debt crisis and that they will be paid for by closing tax loopholes on wealthy Americans.