January 22nd 2024.
In a groundbreaking move, the Biden-Harris Administration has announced today an additional $4.9 billion in student debt relief for 73,600 borrowers. This brings the total amount of loan forgiveness approved by the federal government to an impressive $136.6 billion, benefitting over 3.7 million Americans. Secretary of Education Miguel Cardona expressed gratitude to the administration for their tireless efforts in fixing the broken student loan system and addressing the unnecessary barriers and inaccuracies that have prevented borrowers from receiving the debt forgiveness they deserve.
Cardona specifically noted that this latest round of relief will primarily go to public servants, including teachers, social workers, and other essential workers who have dedicated their lives to serving their communities. This includes those eligible for the Public Service Loan Forgiveness program, as well as those qualifying for income-driven repayment forgiveness due to more accurate accounting of their payments.
The press release outlined two distinct categories of debt relief. The first category will allocate $1.7 billion to 29,700 individuals through adjustments to the Income Driven Repayment payment counts. This will benefit those who have already enrolled in the White House's Saving on a Valuable Education Plan repayment plan, have been making payments for at least 10 years, and have less than $12,000 in student loans. This means that their student loan balances will be completely erased.
The second category will provide $3.2 billion in relief to 43,000 borrowers through the Public Service Loan Forgiveness Program. This program has already forgiven a total of $56.7 billion for 793,400 borrowers since 2021. The Department of Education has also been actively reaching out to eligible borrowers who have not yet enrolled in the program, encouraging them to take advantage of this opportunity.
James Kvaal, the U.S. Under Secretary of Education, emphasized the administration's commitment to helping those who have been negatively impacted by the student loan system. "Today, we are assisting borrowers who were promised help with their loans, made life decisions based on those promises, and have diligently made payments for years," Kvaal stated. "The Biden-Harris Administration will not rest until we have helped every individual harmed by the broken student loan system."
This monumental announcement comes at a pivotal time, as Americans across the country have been advocating for relief from student loan debt. Many have been struggling to make ends meet, especially during the pandemic, and the resumption of student loan payments has added additional financial strain. This latest action by the Biden-Harris Administration is a significant step towards addressing the issue and providing much-needed relief to millions of borrowers.
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