The Biden administration announced another massive round of student debt handouts Wednesday morning with $7.7 billion going toward clearing debt for more than 160,000 borrowers.
The Biden administration announced another massive round of student debt handouts Wednesday morning with $7.7 billion going toward clearing debt for more than 160,000 borrowers.
Three categories of borrowers are covered in the latest handout: people receiving Public Service Loan Forgiveness (PSLF), people signed up for President Biden’s Saving on a Valuable Education (SAVE) Plan who are also eligible for its shortened time-to-forgiveness benefit and people receiving forgiveness on income-driven repayment (IDR) as a result of fixes made by the administration.
It includes $5.2 billion for 66,900 borrowers through fixes to PSLF, $613 million for 54,300 borrowers through the SAVE Plan that will go to borrowers enrolled in the SAVE Plan who had smaller loans for their postsecondary studies and $1.9 billion for 39,200 borrowers through administrative adjustments to IDR payment counts, the Department of Education said in a press release.
As of Wednesday’s announcement, the Biden administration has cleared $167 billion in student loan debt for 4.75 million Americans, the DOE said.
“The Biden-Harris Administration remains persistent about our efforts to bring student debt relief to millions more across the country, and this announcement proves it,” Secretary of Education Miguel Cardona said in the release.
