Biden’s Administration Approves $5 Billion in Student-Debt Relief for 74,000 Borrowers
More Student-Loan Borrowers Set to Receive Debt Relief
President Joe Biden’s administration has recently announced another round of student-debt relief for thousands of borrowers. The approval provides $5 billion in debt relief to 74,000 borrowers. This latest effort is part of the administration’s ongoing commitment to fixing the repayment system for student loans and providing relief to those who qualify.
Who Qualifies for the Debt Relief?
The debt relief is targeted at two groups: public servants and borrowers on income-driven repayment plans. Nearly 44,000 of the borrowers approved for relief are teachers, nurses, firefighters, and other individuals who have completed 10 years of public service and are eligible for Public Service Loan Forgiveness. Additionally, close to 30,000 borrowers who have been making payments for at least 20 years but have not received relief through income-driven repayment plans will also benefit from this relief.
President Biden’s Statement
In a statement, President Biden expressed his commitment to providing relief to borrowers who have been impacted by the broken student loan programs. He stated, “My Administration is able to deliver relief to these borrowers—and millions more—because of fixes we made to broken student loan programs that were preventing borrowers from getting relief they were entitled to under the law.”
Continued Evaluation of Borrowers
The Education Department is continuing to evaluate borrowers’ accounts every other month to determine if they meet the criteria for loan forgiveness. This ongoing evaluation ensures that borrowers who qualify for relief receive the assistance they are entitled to.
Challenges with Repayment
Millions of borrowers are currently transitioning back into loan repayment after a three-year pause. However, there have been challenges with the repayment process. The Education Department discovered that federal student loan servicers failed to send on-time billing statements to borrowers, resulting in consequences for the servicers. As a response, the department implemented an accountability framework to ensure servicers fulfill their obligations.
Future Plans for Debt Relief
The Education Department’s commitment to providing debt relief is unwavering. Education Secretary Miguel Cardona stated, “This level of debt relief is unparalleled, and we have no intention of slowing down.” Despite challenges and setbacks, the government is determined to address the issues in the student loan system and provide relief to borrowers.
