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Biden administration announces new student loan forgiveness for 160,000 borrowers

U.S. President Joe Biden discusses the Congressional stopgap government funding bill to avert an immediate government shutdown in the Roosevelt Room at the White House in Washington, D.C. on Sunday, Oct. 1, 2023. (Yuri Gripas/Abaca Press/TNS)

The administration of President Joe Biden announced on Wednesday a new round of student loan forgiveness worth $7.7 billion.

The new round of student loan cancellation will benefit over 160,000 borrowers, according to the federal Education Department.

Three categories of borrowers are benefiting.

They include people enrolled in the Public Service Loan Forgiveness plan, which allows public workers like teachers, nurses and law enforcement officials to get loans canceled.

People enrolled in the administration’s Saving on a Valuable Education (SAVE) Plan are also benefiting. The program, a repayment plan based on borrowers’ incomes, allows some people to get forgiveness after 10 years of making payments instead of 20 or 25.

Borrowers enrolled in other income-based repayment plans are also getting relief as a result of fixes made by the administration, according to the Education Department.

Wednesday’s announce brings total student loan forgiveness under the Biden administration to $167 billion. A total of 4.75 million people have benefited, according to the department.

“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,” U.S. Secretary of Education Miguel Cardona said in a news release. “One out of every 10 federal student loan borrowers approved for debt relief means one out of every 10 borrowers now has financial breathing room and a burden lifted.”

Borrowers benefiting from the new loan cancellations have already begun receiving emails, the department said. The relief will be processed in the coming weeks.

The Biden administration has announced numerous rounds of student loan forgiveness since taking office.

An effort by Biden at broader relief that would have benefited borrowers across the country was struck down by the U.S. Supreme Court last year.


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