President Joe Biden greenlights additional student loan relief, extending assistance to 74,000 borrowers and waving off a substantial $4.9 billion in debt. This relief specifically caters to long-term borrowers enrolled in income-driven repayment plans and the Public Service Loan Forgiveness program. The move follows changes implemented by the Education Department, partially influenced by a nonpartisan watchdog report.
The relief aligns with previous measures taken by the president in recent months, highlighting his commitment to more targeted loan forgiveness despite the Supreme Court’s rejection of his initial relief plan last summer.
“I won’t back down from using every tool at our disposal to get student loan borrowers the relief they need to reach their dreams,” affirmed Biden in a statement regarding the relief.
For the 29,700 borrowers enrolled in income-driven repayment, Biden waived $1.7 billion by reassessing their repayment timelines. Those repaying loans for over two decades automatically qualified for total forgiveness after the adjustment.
The remaining $3.2 billion benefited 43,900 borrowers enrolled in Public Service Loan Forgiveness, a program for public servants. Many of these borrowers had their payments reassessed by the federal government, resulting in shortened repayment timelines.
The administration has been adjusting accounts for borrowers in income-driven repayment plans and reassessing payments for Public Service Loan Forgiveness borrowers for several months. The Education Department has been gradually notifying affected borrowers. In October, 125,000 borrowers experienced $9 billion in forgiveness, followed by another $5 billion for approximately 80,000 borrowers last month.
The Biden administration’s focus on selective student loan relief appears driven by political motives, possibly aimed at gaining support for the upcoming November elections. However, this approach unfairly burdens taxpayers who did not voluntarily assume student debt.
